So you have decided to purchase a home. Congratulations! Buying a home is usually the most expensive item you will purchase in a lifetime. The process might be stressful but it will be extremely rewarding. If this is your first home, don’t worry – it’s worth it. We would also recommend reading First Time Homebuyers and FHA Loans as part of this section.
We are delighted you chose our site to provide you with some of the most valuable information you need to know during one of the most important decisions of your life. Our aim is to guide you through the process and hope you will use all the tools available on the site. If you would like one-on-one assistance, just locate one of our Real Estate professionals on our site and they will be more than happy to assist you.
STEP ONE - First of all it would be a good idea to develop a budget to find what you can afford. Please click here to understand your budget. After you have filled in the information in the “Budget” section, you can move to step two.
STEP TWO - Your Debt Ratio tells the bank how much property you can afford. Please click here to understand and calculate your Debt Ratios. This ratio will assist you in determining the price of the property you can comfortably afford.
STEP THREE - Next you will need to get a copy of your credit report. A credit report will give your lender a good indication of how you have managed your credit in the past and will likely manage it in the future. To obtain a copy of your credit report, it is advisable to use a Mortgage Professional. The Mortgage Professional will calculate the ratios and verify basic information so you can obtain a pre-approval certificate. This pre-approval (or pre-qualification) is exactly what the Realtor will be looking for when you visit them for locating a property. Please take time to understand Credit by reading the Credit Section.
STEP FOUR - Next you should select a Professional Realtor in the area you are looking to reside. It should be noted that while you may search for a home on your own, it might be prudent to work with a professional Realtor. They have information on the current prices of homes in your area and will be able to guide you through the process. A Realtor can provide you with additional information such as school districts, locations of government offices and agencies in the area, parks, hospitals, utility companies and a host of other relevant information on the area.
Property types: The following are the typical types of residences: single family, duplex (2 family), triplex (3 family), fourplex (4 family), condominiums, townhouses, co-ops, manufactured and mobile homes.
STEP FIVE - You found your home, so you will need to sign a contract. A contract is a legally binding document, which will state, among other things, the name of the seller(s), name of purchasers, the address of the property, the purchase price, the down payment, and what item(s) the seller has decided to include with the sale of the property. As part of the contract process, there will be negotiations regarding the terms of the contract, how much time the seller is prepared to wait for you to obtain a mortgage, on what date the contract will expire or the loan should close. Of course, there are many other conditions which the contract will contain, talk to your Realtor for more information.
