Congratulations on taking the exciting step towards homeownership! Whether you’re a first-time buyer or looking to invest in a new property, navigating the home-buying process can feel overwhelming. That’s why we’re here to guide you through every step of the journey.
In this section of our real estate website, you’ll find a wealth of resources and expert advice to help you make informed decisions and find the perfect home for you and your family. From understanding your financial options to exploring neighborhoods and negotiating offers, we’re committed to providing you with the knowledge and support you need to achieve your homeownership goals.
What Can I Afford?
The best thing you can do is contact a lender for an exact number, but these factors can help you get a good idea on what you can afford:
- Consider down payment: Determine how much you can afford to put towards a down payment. A larger down payment will lower your monthly mortgage payments and may qualify you for better loan terms. Usually down payments are 3.5% and 10% of the purchase price, but this depends on the type and terms of the loan. If you are able to come up with a 20% down payment you may not have to mortgage insurance.
- Mortgage Affordability: Usually lenders require borrowers to pay around a quarter of their monthly income. Mortgage payments include:
- The principal on the loan
- The interest
- Property taxes
- Homeowners insurance
- Closing Costs: Typically range from 2% to 3% of the purchase price of the home, so it’s important to budget accordingly and be prepared for these expenses at closing. These costs include loan processing and other home fees.
Home Buying Process
Buying a home is a significant financial and emotional decision, but with careful planning and guidance, the process can be smooth and rewarding. Here’s a step-by-step guide to help you navigate the home-buying process:
- Get Pre-approved for a Mortgage: Getting pre-approved for a mortgage will give you a clear understanding of how much you can afford to spend on a home. Contact us at 615-516-6673 and we can help you find the lender that best suits your needs. Once you’re pre-approved, you’ll have a competitive edge when making an offer on a property.
- Define Your Criteria: Determine your priorities and preferences for your future home. Consider factors such as location, neighborhood amenities, size, layout, and features. Create a list of “must-haves” and “nice-to-haves” to guide your search and help you narrow down your options.
- Start Your Home Search: Begin exploring homes that meet your criteria by browsing online listings, attending open houses, and working with a us. We can provide valuable insights, schedule property viewings, and help you navigate the local housing market.
- Make an Offer: Once you’ve found a home you love, we will help you submit a competitive offer to the seller. Your offer should take into account factors such as the property’s condition, market value, and any contingencies you want to include, such as a home inspection or financing contingency.
Negotiate Terms: Be prepared to negotiate with the seller to reach a mutually acceptable purchase agreement. We will navigate negotiations and advocate for your best interests throughout the process.
Perform Due Diligence: After your offer is accepted, conduct thorough due diligence to ensure the property meets your expectations and is free of any issues or defects. This may include scheduling a home inspection, obtaining a property appraisal, and reviewing relevant documents such as the title report and homeowners association (HOA) disclosures.
Secure Financing: Finalize your mortgage financing by working closely with your lender to complete the loan application process. Provide any additional documentation requested by the lender and stay in communication to ensure a smooth closing.
Close the Deal: Once all contingencies have been satisfied and financing is in place, you’ll be ready to close on the property. Review and sign the necessary legal documents, including the purchase agreement, mortgage loan documents, and closing disclosures. Pay the closing costs and any remaining funds needed for the down payment, and receive the keys to your new home.
Remember, buying a home is a complex process, and it’s okay to ask questions and seek guidance from professionals along the way. Working with an experienced real estate agent, mortgage lender, and other trusted advisors can help ensure a successful home-buying experience.
If you would like to learn more information about the buying process call 615-516-6673, or check out the buyer’s section of our blog!
