Whether it’s your first home purchase or you just need to brush up on the home buying process, planning for the days ahead can save you time and money. Knowing what needs to be done and what’s ahead will keep stress at bay and light to way to a successful transaction. Check out these 6 steps to buying a house before you begin browsing home for sale.

6-steps-to-buying-a-house-1-joshua-norberStep 1 – Check Credit

The Fair Credit Reporting Act permits you to receive a free copy of your credit report from the top three reporting agencies. This is good news! A home mortgage lender uses this information to decide whether you’re a good candidate for a loan. You want to check your credit report for errors and delinquent accounts. Take care of these issues right away. Remember that this is not a good time to make large purchases that will adjust your debt to income ratio. The lender will also be looking to see if you have a stable work history. Keep that in mind before you decide to switch jobs.

Step 2 – Save Money

Even with a home mortgage loan, you will need plenty of cash to pay for the down payment, closing costs, and other expenses related to the move. Your down payment will be around 20-percent of the price of the home. Expect the closing costs to come in between 2-8 percent of the price. You’ll want to have enough money to cover moving expenses, upgrades, and any other services needed during the home buying process. It’s better to have more money than you need than to be caught short of cash. This is one of the most important steps to buying a house.

Step 3 – Find a Real Estate Agent

A professional real estate agent has the experience, knowledge, and skills you want on your side as you proceed. Because you will work closely with your agent and their team, it’s important that your expectations are clear from the beginning. Learn about their communication methods, how they plan to use technology to help with your search, and what kind of track record they have with other buyers. They should listen to your needs and provide you with honest, straight-forward advice.

Step 4 – Apply for Home Mortgage Pre-Approval

Save time when it comes to looking for your dream house by knowing exactly how much home you can afford. A home mortgage pre-approval sets the target price range for you. If you know that you can afford a home up to six hundred thousand dollars, you won’t go looking for a house above that price. There’s nothing quite as frustrating as finding the perfect home, only to find that it’s not within your budget. The pre-approval also tells sellers that you can successfully complete the process.

6-steps-to-buying-a-house-2-joshua-norberStep 5 – Place an Offer

When it comes to placing an offer, you’ll want to listen to the wisdom of your real estate agent. You want to place an offer that gets the attention of the seller and lets them know you are serious. Be prepared in case your offer has competition. When this happens, your real estate agent’s negotiation skills will come into play. They will represent your interests and do their best to come out with the best result.

Step 6 – Closing Time

This is the final phase in the steps to buying a house. After the offer is accepted, the lender will order inspections and an appraisal. There will be a title search and your real estate agent will walk you through the paperwork. On closing day, you will pay closing costs and sign final paperwork. This is the day you’ve been waiting for because this is the day you’ll receive the keys to your home.

Don’t let the home buying process intimidate you. With these 6 steps to buying a house on your side, you can’t go wrong! The best source of information about local communities and real estate topics is your real estate agent. Give Joshua or Kelly Norber of the Norber Real Estate Group a call today at 248-785-3737 to learn more about the area, discuss selling your house, or tour available homes for sale.

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