Buying a home is a significant milestone in many people’s lives and one of the biggest financial decisions you’ll make. Home buying can be confusing and overwhelming, but understanding each step can help ensure a smooth transaction. If you’re considering buying a home, it’s important to familiarize yourself with the process from pre-approval to closing. In this blog, we’ll break down each step of the home-buying process so you can be better prepared.
Step 1: Get Pre-Approved
The first step in the home-buying process is to get pre-approved for a mortgage. Pre-approval gives you an idea of what you can afford and helps you focus your home search. During pre-approval, you’ll provide information about your income, expenses, and debts to the lender. Based on this information, the lender will determine how much you can borrow and provide you with a pre-approval letter. For more information on items required for a mortgage, check out this guide.
Step 2: Start Your Home Search
Once you have pre-approval, you can start your home search. Work with a real estate agent or search online to find homes that fit your budget and needs. When you find a home you like, your real estate agent can help you schedule a visit. When you visit the home, make sure to ask any questions you have and assess the condition of the home.
Step 3: Make an Offer
When you’ve found the home you want to buy, it’s time to make an offer. Your real estate agent will help you submit an offer and negotiate the terms with the seller. The terms of the offer typically include the price, closing date, and any contingencies. If the seller accepts your offer, you’ll enter into a contract to purchase the home.
Step 4: Get a Home Inspection
Before you finalize the purchase of a home, it’s important to have a home inspection. A home inspector will assess the condition of the home and identify any potential issues that need to be addressed. The results of the home inspection can impact the final purchase price, so it’s important to be prepared for this step.
Step 5: Finalize Your Mortgage
Once you’ve completed the home inspection, it’s time to finalize your mortgage. You’ll work with your lender to finalize the terms of the mortgage and complete the application process. You’ll also need to provide proof of insurance, such as homeowner’s insurance, to the lender.
Step 6: Close on the Home
The final step in the home-buying process is closing. During the closing, you’ll sign the mortgage documents and transfer ownership of the home. You’ll also pay any closing costs, such as title fees and real estate agent commissions. Once the closing is complete, you’ll officially own the home.
Start Your Home Buying Process with Voyage
Understanding the home buying process from pre-approval to closing is essential to making a smooth transition. Work with a lender and real estate agent you trust, and be prepared to ask questions at each step. At Voyage Federal Credit Union, we’re here to help you every step of the way. Contact us today to learn more about how we can help you achieve your dream of homeownership.