Before you start looking for your new home:
- Know your Credit Rating
- Determine a comfortable monthly budget, down payment, and closing costs
- Choose a loan that works with your finances and get pre-approved
- Make a list of your "Must Haves" and "Would Like to Have"
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THE IMPORTANCE OF PRE-APPROVAL
When you are pre-approved for a mortgage, sellers know that you are serious. Mortgage pre-approval can be done in as little as a day. It requires completing a formal application to the lender and submission of all necessary financial and employment documentation. A good rule of thumb is that your total payment for mortgage, taxes, insurance and assessments should not exceed 28-33% of your gross monthly income
MAKE AN OFFER & NEGOTIATE
Now that you’ve found the home you’d like to buy, it’s time to make an offer. In addition to drawing up the contract, your Agent will be happy to address all your questions about the offer process. Once you’ve written the offer, your Agent will present it to the seller and/or the seller’s representative. At that point, the process – given that a home’s eventual sale price is subject to supply and demand – will depend on the kind of market you’re in. Generally though, the seller can accept your offer, reject it, or counter it to initiate the negotiation process.
CLOSE THE DEAL
If you’ve efficiently taken care of everything connected with purchasing your new home, the experience of taking ownership will be a positive joy with no surprises. Key steps to the closing, also referred to as the “escrow” or “settlement”, include: Getting a title search, the final walk-through, and the settlement.
Oh, and one more thing – you’ll get the keys. In most cases, Possession Date will fall within a couple days, at which point you’ll be able to move into your new home.