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The very first step every first-time home buyer should tackle is to figure out their finances. Buying a new home requires a mortgage, where a lender fronts you the money and you pay it back over time.
Check your Credit
This three-digit number is a numerical summary of your credit report, a detailed document outlining how well you’ve paid off past debts like for credit cards and college student loans.
A lender will check your score and report in order to estimate your pre-approval.
Get Pre-Approval
The next thing you need to do is find a great lender. However, you shouldn’t choose the first lender that you find. Instead, you will want to shop around and get an estimate from several. Once you have chosen a lender, you will then want to get preapproved for a loan
This also requires submitting all supporting documents to the lender within 48 hours.
Look for the Right Home
After you know how much you can afford and you have an agent, you will want to let the agent know what you want from your home.
Make an Offer
Your real estate agent will help you come up with a reasonable offer for the property. They have an idea of how much the home is worth and will run a comparative analysis to come up with a fair price.
Schedule Inspection
Once your offer is accepted, even though you might feel that the house is in great shape, you can’t trust your own eyes. Instead, you need to hire a professional to do a property inspection.
Lender will Submit Request for Appraisal
Lenders will require that the home be appraised before they release funds so you can buy. The appraisal will provide an estimate of the worth of the home and is based on comp sales in the area, as well as public records, market trends, and the inspection.
Closing
Finally, you will walk through the property with your agent to make sure that it is all in order. During this time, check to see if repairs promised by the seller were made or not. You will then review your closing disclosure. This paperwork will be sent to you a minimum of three days before closing.