If you’re looking for your first home, this can be a very exciting time. It’s also a time to buckle down so you can find a home you can afford and have everything you need to get through your closing. Follow these easy steps to help streamline the home ownership process.
Home Ownership Checklist
Get Pre-Qualified First
Picture it. You find your dream home, only to be told you can’t afford it. That’s not what you want, so let’s back up. Before you find that dream home, you have to see how much house you can afford. This process looks at considerations like your bank account, pay stubs, down payment, job history, and credit score. Contact a mortgage lender or broker so you can get pre-qualified first.
The paperwork can be quite intense as you will need all of your bank statements, pay stubs, bill payment history (including utilities), a recent credit report and other financial data. Don’t be alarmed. This process is to help you pre-qualify for the mortgage amount that will be comfortable for you financially.If you’re laid off, fired or sick, the bank wants to ensure that you can still pay your mortgage.
Clean up Your Credit Report
An area that can help you to pre-qualify is to check your credit. You may want to do this with your mortgage lender or broker so you don’t have too many recent credit inquiries. If you have a lower credit score, they may request you update your credit report by writing off anything that’s older than 7 years. Pay off any outstanding debts and when you come back in 6-months, you may find that your credit score is a lot higher.
Shopping for a House
Once you’re pre-qualified, you can start to look for a house within your budget range. When you find the house you want, let the realtor know. That’s also the time to hire a real estate attorney who can help you prepare to make your offer and prepare for your closing.
Once your offer has been approved, you will meet with your real estate attorney to write out a few checks for your down payment, closing costs and other fees. Realtor.com statesthat a closing can be about 45 to 50 days after your offer is accepted. While you’re preparing for your closing, this is the time to start packing and calling the movers. For cost effective real estate closing services Rockville MD residents look online in their area.
Your closing can take a few hours as there is a substantial amount of paperwork to get through. At this meeting, you will have the realtor present, the bank lender, the mortgage broker, your real estate attorney and the selling agent and their real estate attorney. After your paperwork has been completed and a few thousand copies made, you’ll receive your new keys!
That sums up the home buying process. When you’re ready to get started, just contact a mortgage lender or broker in your area to start the pre-qualification process.