Preparing to purchase your first home? To simplify the process, it’s beneficial to break it down step by step. Below is a brief overview of the homebuying journey and what you can expect.
Firstly, it’s crucial to acknowledge that the timeline from initiation to closing on a house can vary based on the market and numerous other factors. Expect the process to span from as little as 15 weeks to eight months or more.
One of the initial steps involves assessing your options based on your financial situation. Will you be applying for an FHA loan? Is your credit in good standing? Having answers to these questions early on can facilitate securing funding and setting a solid foundation.
If all is in order—or to delve deeper into specific financial aspects—reach out to a mortgage lender for pre-approval. In the current seller’s market, a pre-approval letter is vital to showcase your suitability to sellers. Additionally, a lender can help establish your initial budget and address any loose ends to secure a favorable mortgage rate.
Once approved and with the assistance of a real estate agent, you can start browsing listings. Whether you explore homes recommended by your realtor or those available online, it’s advisable to narrow down search results by factors like price range, location, and number of bathrooms. Maintaining realistic expectations streamlines the overall process.
Upon identifying suitable options, schedule property tours. While virtual tours are helpful, physically assessing the property is essential before committing. When ready to make an offer, be prepared for potential competition. Collaborate with your realtor to negotiate with sellers and refine any contingencies to secure your desired home.
Upon acceptance of your offer, you enter the due diligence period. Schedule a home inspection and appraisal during this time, adapting based on your desired pace for the process but without neglecting these crucial steps.
Subsequently, the underwriting process begins, which may take a few days or longer for complex assets. An underwriter will scrutinize your finances and property details. Responsiveness to the lender and underwriter is crucial to maintain a smooth process.
Finally, the closing stage arrives. After finalizing the loan, both parties review the deal, conduct a final walk-through of the property, sign the last paperwork, transfer funds, and, ultimately, you receive the keys to your new home!
For a detailed breakdown of the homebuying process, explore the accompanying resource.
Infographic provided by The Sherry Riano Team, learn more about FHA loans