Buyer's Guide
How to buy a home in 10 steps
Shop for your mortgage first so you’ll know how much house you can truly afford. Plus, once you’re pre-approved, sellers will know you’re serious and ready to buy. Comparison shopping for a mortgage is important. Although you can get a mortgage just by going to your primary financial institution or the first online place you see, it pays to shop around. Before you apply, have ready copies of your bank statements, pay stubs, W-2 forms and tax returns for the past two years.
1. Shop for a Mortgage
Trust us—you want to hire a real estate agent. There’s no benefit to going without one because buyers don’t pay an agent’s commission—sellers do. Plus, you have a lot to gain. We have expertise in the buying process, neighborhoods, the market, and negotiation. You’ll get through the home buying process a lot faster.
2. Hire Dream Living Orlando
You’ll be a more efficient shopper if you know what you’re looking for. How many bedrooms and bathrooms will you need? Pool? Garage? Think about location, too. Do you want to live close to work? Is a high Walk Score important to you? The type of neighborhood factors in as well. Do you want a family-friendly neighborhood with good schools? Split your list into must-have features and nice-to-have features.
3. Create a Wish List
Pour a glass of wine and make yourself comfortable as you enter this stage. You will likely look at dozens (or even hundreds) of homes online. Your "Needs and Wants" list will help narrow down your options, as well as determine if your budget and home dreams align. To start, make a short list of properties that fit your needs.
4. Search Listings
With your agent in tow, visit as many properties as you can. Even if you fall in love with the first house you see, commit to seeing as many on your list as possible. Comparison shopping is important, and you’ll learn more about the market with every one you walk through...and you might just fall more in love with another home.
5. Visit Homes
We will guide you on what sort of offer to make based on many factors, such as the home’s asking price, the market, and how much you want the house. If you’re in a competitive situation, the seller might accept your initial offer, or they may engage in negotiations.
6. Make an Offer
If your offer is accepted, it’s time to get official. Being pre-approved for a mortgage means you’re likely to get the mortgage. Go back to your lender, and let them know you’re ready to move forward with the process. Your lender will order an appraisal and have you sign more paperwork. Your loan application will then enter the underwriting stage before it’s approved.
7. Loan Approval
Some homes can be money pits. Do your due diligence by hiring a home inspector who can let you know any issues the house may have. Every house (even new construction) may have some problems, but not all of them are deal breakers. Your inspector can’t tell you whether to buy or not, but the inspector’s report will help you decide what to do. Enlist the help of your real estate agent or a trusted homeowner to help guide you.
8. Home Inspection
A bank won’t finance a home for more than it’s worth, so getting your loan depends on the appraisal. An appraisal is an expert determination of a property’s value. If the appraisal comes in at or more than the price you offered to pay, it’s time to celebrate. But if the appraisal comes in lower than your offer, you may need to come up with extra cash, renegotiate the offer, or say goodbye to that particular home.
9. Home Appraisal
You’ve reached the finish line. Well, after you pay closing costs. Closing costs typically represent 2 percent to 5 percent of the home’s purchase price. These costs generally include attorney fees, appraisal fees, your down payment, homeowner’s insurance, and property taxes. You’ll pay these during a meeting—your closing—where you’ll sign all the required paperwork and walk away with the keys.