HOW SHOULD YOU GO ABOUT BUYING YOUR FIRST HOME?

When you are buying a home ensure that you invest some time and research to find the perfect home that fits within your budget. You can’t take hasty decisions just to buy a home as early as possible. The market fluctuates often and hence it is important to know when to proceed and on top of that your finance should also be steady.

The home down payment is a vital part of your home buying journey. Planning your finances early on will help you get enough time to look for your interested property rather than sitting down with the calculator. Varying marketing conditions may delay your opportunity for purchasing an apartment. Being patient is crucial under such scenarios as one wrong decision can lead to something very unexpected.

There is a saying: It is better to be ready when the opportunity comes. This is also true in the real estate market. There are times when the inventory is enough to satisfy the needs of the customer. However, there are times when the demand is too low compared to the inventory. At such times you can ensure that you have a flexible plan at work. You can’t emphasize enough how important it is to research the market so that you have a backup for the above scenarios. In case the inventory is low then it may take you some time to find the right home. Buying your first home with modern amenities and unique features may take much more time. There are a few steps that you will need to navigate as you prepare and complete closing on a new home. 

Below is a timeline you may want to consider so that you will be ready for the closing 30-45 days after your offer letter has been accepted.

Offer negotiation: It generally takes 1-3 days. Once you make an offer the builder will review it and give their response. These negotiations can take a few days because, in the end, the conclusion should include: What is included in the purchase, The closing date, and the moving date.

Purchase Agreement Finalization: The next step is to finalize the purchase agreement between the buyer and the seller. This takes somewhere around 7-10 days.

Home Loan application: Now is the time to make an appointment with your home loan provider and expedite the loan application process. Your application will be reviewed and processed after which it will be passed on for approval. You must know your financial report card or simply credit score based on which your home loan application will be judged. It is better to review your credit score today.

Appraisal order: The lender will need an appraisal done on the property to estimate its value. Once the appraisal is completed, the loan is one step closer to being approved. The lender will review the results of the appraisal and determine if the loan is acceptable considering the value of the home. In some cases, additional paperwork is required. In most situations, the lender can evaluate the appraisal and complete the loan application process within the time limits established in the purchase agreement.

Home Loan Approval: Your lender will give you final loan approval, and you will be considered clean to close on your new property. Once you have received your final approval, all you have to do is to start the countdown until your closing date. Your closing date comes typically 30-45 days after the offer has been accepted.

Home inspection: This step can be done by yourself if you have some knowledge of civil engineering. Else you can appoint an inspector who can do checks at nominal costs and usually takes only one day. Make sure that you perform this step before home deal closure. In case you find defects in the construction that may incur a cost in the future, you can either back out from the deal completely or ask for a discount straightaway.

A closing day is a big event. Once all of the papers have been signed, and all the checks have been written, the house will be transferred into your name. You now are the proud owner of a new home that is all yours to enjoy!