Once you have decided that you are ready to buy a home, there are a few steps that you need to take to get started. First, you need to get your finances in order. That means reviewing your credit score, preparing for a down payment, and being aware of closing and other costs you may have to pay upfront. Checking your credit score is an easy first step with online resources that are easy to use. Most lenders will tell you their minimum acceptable score, but a score of 650 or more is a good start.

Determine Your Budget

Your next step is to determine how much house you can afford. There are several online payment calculators that will help you find out what your payment will be depending on how much your loan is, what the percentage rate is and the length of the loan. Be sure that you also account for insurance and taxes when calculating your payments.

Choosing a Lender & Mortgage Broker

Now that you have your credit score and an idea of what you are able to afford, it is time to start talking to lenders and real estate agents. Finding a lender may either talking directly to a lender or finding a mortgage broker who will search for the best lender for you. A good lender is going to keep in touch with you, be able to work with you to resolve any issues and will have several lenders that they can work with to get you the best loan for you. A good real estate agent will be able to find you several homes to review within your budget. They will also be able to help you with the negotiations and help you with all the contracts and paperwork needed to get to closing on your new home.

Finding the Right Home

Finding your home is the next step. This involves determining what you must have in the home and what you would like to have. Make sure your realtor knows what you are looking for. Make appointments with your realtor and keep them, their time is valuable and they will want to work for you if you respect that. Check out several houses before you make your decision. You may even talk to a contractor like Alair Homes about building a new home to your specifications. Then, work with your Realtor to make an offer. Be sure to include any contingencies that are important to you, but also be prepared to negotiate until you and the seller can come to an agreeable contract.

Negotiations

Once you have your contract negotiated, you will need to take this to your lender so that they can give you an approval on the terms. Most lenders will require some inspections that must be completed before scheduling your closing. Any deficiencies found in the inspections will need to be addressed before you can go to settlement. This may mean that you will have to go back to the seller and renegotiate to meet the lenders requirements.

After all the negotiations are done, inspections are complete and contracts are signed. it is time to go to closing. This will usually be completed by a lawyer, either at their office, the realtors office, or that of a title company. All the legal requirements will be signed by both the seller and buyer, checks will exchange hands, and you will sign the mortgage paperwork. Once this is completed, the transaction is settled, and the new deed and mortgage will be filed at the courthouse. You now own the home.