Buying a home is a big step and can seem overwhelming, but with the right guidance and preparation, it can be a smooth and enjoyable process. Here is a step-by-step guide to help you navigate the home buying process:
This is the first step in the home buying process, and it involves getting pre-approved for a mortgage. To do this, you will need to provide your lender with preliminary documents such as W-2s, pay stubs, bank statements, and tax returns. This will give you an idea of how much you can afford to spend on a home and will also make you a more attractive candidate to sellers.
2. Find A Home:
Once you have your pre-approval, it's time to start looking for your dream home. Assess your wants and needs and let a real estate agent like Century 21 MK Realty help you find the perfect home to fit your lifestyle.
3. Make an offer:
Once you find a home that you love, make an offer. If the offer is accepted, sign the binder and schedule an inspection.
Schedule a home inspection within 5 days of the accepted offer. This will give you a professional evaluation of the condition of the home and any potential issues that need to be addressed.
The seller's attorney will prepare a contract for the buyer's attorney to review and discuss with their client.
Submit updated documents from your pre-approval to your mortgage broker.
7. Order Appraisal:
Within two weeks of the signed contract, the mortgage broker will schedule an appraisal.
8. Appraisal Report:
Once the mortgage broker receives and reviews the appraisal report, they will update you on any outstanding items needed for approval. Stay in touch with Century 21 MK Realty throughout this process.
The processor will submit your file to the underwriting department for review and a commitment letter will be issued. This letter will be sent to the buyer's attorney for review.
Submit all outstanding closing condition items to the mortgage broker for the commitment letter prior to final clearance.
11. Title Report:
The buyer's attorney will submit the title report to the bank attorney for review and clearance
12. Homeowners Insurance Policy:
Provide a copy of the appraisal and mortgage clause to the buyer to secure a homeowners insurance policy.
13. Clear to Close:
The buyer's attorney will be notified that the file is clear to close and a closing date will be scheduled by both the buyer and seller's attorneys.
14. Final Walk-Through:
Do a final walk-through of the property to approve the condition of the house prior to signing the purchase documents with your Century 21 MK Realty agent.
All parties will sign the closing documents with the bank attorney. Congratulations! You are now a homeowner!
The Home Buying Process Tips:
- Save and submit all future pay stubs.
- Save and submit all future bank statements (complete with all pages)
- Keep copies of all documents submitted to processing.
- Continue to pay all debts and loans on time.
- Don't make any cash deposits.
- Don't make any large purchases on your credit cards.
- Don't co-sign a loan for anyone.
- Don't change bank accounts.
- Don't apply for new credit cards.