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It takes a lot of time and energy to buy a house, from seeing the dream house, meeting with mortgage brokers, signing the paperwork to moving in. The simplified process of buying a house follows below, it is easy to manage and will assist you to make the best decisions.
It is recommended that home buyers have moderate debt and look at paying a 20% down payment. Houses should ideally not cost more than three to five times the annual family income. But you must make this decision based on your financial situation.
The best way to do this is to visit a mortgage broker. To prequalify, you only need to provide certain financial information to your mortgage broker, such as your income and the amount of savings and investments you have. This information will be reviewed and you will know how much you can qualify for. This will tell you the price range of the house you may look for.
Real estate agents can provide you with useful information about houses and communities that are not easily accessible to the public. Knowledge of the home buying process, negotiation skills, and familiarity with the area you want to live in are all invaluable.
Take time to find a suitable home, then work with your real estate agent to negotiate a fair offer based on the average comparable value of homes in the same neighborhood. Once you and the seller have agreed on a price, the home will enter the escrow stage, which is the time it takes to complete all the remaining steps in the home buying process.
Generally, the purchase price depends on the home inspection to check for signs of structural damage or things that may need repair. Your real estate agent will help you set up this inspection within a few days after the offer has been accepted. If the inspection reveals significant property damage, this allows you to renegotiate your offer or withdraw the price without being punished.
Lenders offer a wide range of loan plans at competitive interest rates. Every homebuyer has his priorities when choosing a mortgage. Some people are interested in keeping the monthly payment as low as possible. Others ensure that their monthly payments never increase.
An appraiser will need to conduct an independent assessment to determine the value of the house. The appraiser is a member of a third-party company, which means they do not have a direct relationship with the lender. The evaluation will let all parties know that you have paid a reasonable price for the house.
As you can imagine, buying a house involves a lot of paperwork. Your lender will arrange for the title company to handle all paperwork and ensure that the seller is the legal owner of the house you are buying.
In the end, you will sign all the documents necessary to complete the purchase, including your loan documents. Once the documentation is returned to the lender, it generally takes a few days for the loan to be financed. Once the funds are delivered to the seller, you can move into your new home.
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