5 things you need to know about the buying process
When you reach the personal milestone of investing in your own first property, there are many layers of the process. From starting the home search to lining up financing, keeping up with the the details is one of the most challenging aspects of buying a home. While many of the aspects of the process are intuitive, we are here to let you in on a few tips and tricks we’ve picked up along the way.
1. Organization is imperative
Before jumping into the entire production of buying a home, make sure your bank records and transaction history is up to snuff and neatly organized. Get your credit score and any debt under control. Gaining approval for a mortgage requires an immense amount of research into your past to make sure you are a secure borrower, and they will request a number of documents from you. Speed up the process by organizing these documents beforehand.
2. You can interview your lender
Choosing the right lender is not just about shopping for low interest rates. Take the time to interview lenders to make sure they find the right fit. Since your mortgage will be the largest expense for your home purchase, compare lender fees along with the quality of educational information and assistance your prospective lenders can provide. Ask friends, family, and agents for recommendations and referrals, and work with the lender with whom you are most comfortable.
3. Don’t let the closing costs catch you off guard
Closing costs tend to carry a heavier financial burden than you may have thought, so make sure you are prepared. While your lender should provide you with a Good Faith Estimate (GFE) of your closing costs, budget accordingly and account for a little bit of extra padding. Be cognizant of how much you can put into a down payment and how much money you will have to invest into the property after the close.
4. Pay attention to the inspection and appraisal
The home inspection can provide you with a great deal of information regarding your future home. The home inspection will reveal insights about your property, so feel free to tag along and ask questions to get to know as much you can about the home. In addition, always look over the appraisal and disclosures with a fine-tooth comb. You can never be too thorough.
5. Use your attorney
The entire purchase process is long, complex, and full of documents with legal terms. Your real estate attorney can assist in making sense of these intricacies, have your back in the negotiations, and will keep your best interest in mind. Check with them to understand what you will and will not be able to do with your property if you have big plans in store, and never hold back if you need clarification on any item pertaining to your future home.
To make sure you’re ready for that first big ticket purchase, get a great team on your side. You can start with a real estate attorney from Anselmo Lindberg & Associates. With years of experience, allow us to bring you into your first home.