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7 STEPS OF HOME BUYING

Buying a home can be an exciting and rewarding experience, but it can also be overwhelming and complex. With so many steps involved in the process, it's important to understand the basics before diving in. Whether you're a first-time homebuyer or an experienced real estate investor, this guide will provide you with the knowledge and tools you need to make informed decisions and navigate the home buying process with confidence.

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DETERMINE YOUR BUDGET
The first step in buying a home is to determine how much you can afford to spend. This involves looking at your current income, expenses, savings, and debts to determine what you can realistically afford.


GET PRE APPROVED
Once you have an idea of your budget, it's important to get pre-approved for a mortgage from a reputable lender. This will give you a better idea of how much you can borrow and what your monthly payments will be.


WORK WITH A REAL ESTATE AGENT
A good real estate agent can be a valuable resource when buying a home. They can help you find properties that fit your criteria, negotiate with sellers, and guide you through the entire process.


HOME SEARCH
With your budget in mind and a real estate agent on your side, you can start searching for homes that meet your needs and preferences. This can involve attending open houses, touring homes, and researching neighborhoods.


MAKE AN OFFER
When you find a home that you're interested in, you'll need to make an offer. Your real estate agent can help you draft a competitive offer that takes into account the current market conditions, the condition of the home, and other factors.


GET A HOME INSPECTION
Before closing on a home, it's important to have it inspected by a licensed home inspector. This will give you a better idea of any potential issues with the home that you may not have noticed during your initial visit.


CLOSE ON THE HOME
Finally, if everything checks out and you're satisfied with the inspection report, you can close on the home. This involves signing all of the necessary paperwork, paying closing costs, and receiving the keys to your new home.

LOANS

CONVENTIONAL LOANS

Conventional loans are not guaranteed or insured by the government and are typically offered by private lenders. To qualify for a conventional loan, you typically need good credit, a stable income, and a down payment of at least 5% to 20% of the home's purchase price.

FHA LOANS

FHA loans are insured by the Federal Housing Administration and are designed to help low- to moderate-income borrowers. To qualify for an FHA loan, you typically need a credit score of at least 580 and a down payment of at least 3.5% of the home's purchase price.

VA LOANS

VA loans are guaranteed by the Department of Veterans Affairs and are available to veterans, active-duty military personnel, and eligible surviving spouses. To qualify for a VA loan, you typically need a Certificate of Eligibility and a credit score of at least 620.

USDA LOANS

USDA loans are guaranteed by the United States Department of Agriculture and are available to borrowers in rural areas. To qualify for a USDA loan, you typically need a credit score of at least 640 and a down payment of at least 0%.

Who qualifies for these loans depends on the lender and the specific loan program. However, in general, borrowers will need to meet certain criteria such as having a good credit score, stable income, and sufficient assets for a down payment and closing costs. Some loans may also have specific requirements, such as being a veteran or buying a home in a rural area, so it's important to research the specific loan programs and their requirements before applying.

THINGS NOT TO DO WHEN
OBTAINING A MORTGAGE LOAN

By avoiding these common mistakes, you can increase your chances of obtaining a loan for real estate and ensure a smooth and successful home buying process.

DO NOT change jobs

Lenders will verify your employment the day of closing.

DO NOT change your pay structure

Lenders may need an additional paystub.

DO NOT apply for new credit

Lenders may have to pull credit again before closing and inquiries can lower your credit score.

DO NOT change your marital status

DO NOT deposit any sums into your bank that cannot be documented thoroughly

Lenders may need an additional printout prior to closing to show funds are available or items have cleared.

DO NOT dispute any items on your credit

No disputes allowed on credit reports, even if settled or paid.

DO NOT charge up your credit cards "getting ready for the new house"

This could lower your credit score or increase your debt ratio.

DO NOT let your driver's license expire

The notary at the title company requires current identification.

DO NOT skip payments on your current bills to "save up for the house" including rent

Lenders might have to re-verify prior to closing.

DO NOT spend money from your checking account unless absolutely necessary

Lenders may ask for additional printouts from your bank to check funds.

DO NOT make application for other loans for another property

Lenders check a system called MERS which identifies any loans you have applied for.

DO NOT put any gifts funds into your account

Check with your loan officer on the necessary procedure.

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