Step 1 - Get PreApproved
There is no point in going any further until you are pre-approved for a mortgage unless you are paying cash. Getting a loan is not as easy as it once was and most sellers will not even look at an offer until they see a pre-approval letter. A pre-qualification letter will not cut it. YOU MUST BE PRE-APPROVED. So if you are serious about buying a new home then CLICK HERE to get started. Once you have started the pre-approval process then come on back and go to step 2.
Step 2 - Find A realtor®
You don't have to go it alone. In fact you shouldn't go it alone. Find a Realtor® that you can work with. Interview a couple or ask a friend if they have a Realtor® they trust. Realtors® subscribe to a strict Code Of Ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. That is also the difference between a Realtor® and a realestate agent. So when I say use a Realtor® I mean Realtor®
Step 3 - Find Your New Home
Now the fun begins. You get to go looking at homes and because you are pre-approved and are using a Realtor® you will be looking at homes in your price range with the features you desire in the area you want to live. Research shows that most home buyers are looking online for their new home but your Realtor® should be actively looking for you as well. Make sure your agent is caravaning the new listings in the area and keeping you in mind. CLICK HERE to start your search and to sign up for auto updates so you will know when that perfect home hits the market.
Step 4 - Negotiate The Price
You have probably looked at enough homes by now that you have a pretty good idea what homes are worth but make sure that before you write an offer that your agent has gone over the comparables with you. Know ahead of time what your top price will be for the property. Be willing to walk away.
Step 5 - Do Your Inspections
This may be the most important part of the transaction. Know what you are buying. There are many things that you can inspect for but start with a Physical Inspection, a Chimney Inspection, a Termite Inspection and a Sewer Line Inspection. This can cost a few hundred dollars but well worth it. Even though the seller is required to disclose any defect know to them few sellers would be able to tell you if the sewer line is broken, or the chimney is cracked or if there are termites behind the walls. Spend the money now or pay later!
If there are any defects discovered during your inspection contingency you can ask the seller to fix them or request a credit back towards your closing costs. The seller can agree to your request or say "no" at which time you can take the home as it is or cancel the agreement,
Step 6 - Close Escrow And Move Into Your New Home