The first time you do anything is always the scariest – buying a home here in California is no different. There are no secrets to the process that you need to go through to get a home. Even if you have never been through the process, there are really no secrets to the process of buying a home. It is important to focus on the excitement as much as you can because after you know the steps you need to take, you shouldn’t be nervous anymore.
Get Pre Approved – Get Qualified
A great starting point is to get a copy of your credit report so you know what your credit score is. First, take the time to look over the report to be sure it is accurate. Here are the things that you will need to get pre-qualified or pre-approved:
- Gather your financial information – 30 days of pay stubs, 2 months of bank statements, last quarterly IRA and 401K statements, last year’s W2′s.
- Research Loan Programs, FHA Mortgages, First Time Home Buyer Programs
- Find a Mortgage Company or Lender to work with – list of questions to ask Loan Officer
- Meet with your loan oficer to determine what price range of home you can afford.
- Determine your monthly payment comfort level.
Shopping For A Home
The first thing you will want to do is find a real estate agent and you can easily find one online or through friends.
A great way to start your home search is to search by price range and location. The agent should set you up on some sort of automated email system that will send you new listings every day. Also be sure to look at PropertyNut.com.
Once you have picked out all of the homes that you would like to visit, it is then time to go and take a tour of each one. Take notes about each home you visit. Trust us on this; you won’t remember the specifics otherwise once you visited more than about 5 homes.
After you narrow it down to the house that is your favorite, then it is time to write an offer with your agent helping you.
If your offer is accepted, your agent can help you make sure that appropriate inspections are scheduled and completed.
Get Loan Approval From Mortgage Lender
If you haven’t given all of the information to the lender to get fully-approved with your lender, now is the time to get them everything so you can be approved for a loan. If you haven’t already, provide your loan officer with 30 days worth of pay stubs, your last two months of bank statements, your last quarterly statements from your IRA/401K’s if applicable, W2′s, maybe your tax returns, and any other information your loan officer might ask for.
Getting Insurance On Your Home
After you are done getting qualified and have your paperwork turned into underwriting now it is time to shop for homeowners insurance. The date of effectiveness on your policy should be the day that you close on your new home and you then own it. Make sure that you get a couple of quotes as there are going to be differences in what you are charged.
Closing Time Means You Now Own The House
Talk to your lender and agent to make sure everything is on track to settle on time about 1 week in advance. Right before it is time to sign the final paperwork on the house you need to do a walk through.
If you use these steps as a guide, you will have a great homebuying experience and here is another simple Buying A Home Guide.
