Process of Buying a Home

 The old saying is true.  Location, Location, Location.

When you’re ready to move forward with your home purchase, there are some tasks that you will want to do to prepare:

Find out how much of a home you can afford.   And I mean comfortably afford.    Do a budget, work up your financial plan and then move forward to the pre-qualification process.  The Pre-qualification process is when you will work with your loan officer and they will review your file and educate you on how much of home you can afford.  This is the time to tell them what you can comfortably afford and then you’ll be able to fine tune your plan.

The pre-qualification process will include you providing financial documentation to your loan officer as well as having them run your credit.  This information is vital in determining what you can qualify for and then it’s up to you to ensure that the Pre-Qualification process agrees to your financial plan.
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Your next step is to learn how much cash is needed to buy your new home.   This is another important part of the home buying process and your loan officer will assist you here as well.  There are many strategies that your loan officer can introduce to you that can meet your goals.  Having a plan of action upfront will empower you with your home buying decisions.  Your loan officer will also be able to share with you if there are any Down Payment Assistance programs available.  Be sure that they do provide you with details so you can determine if the program is right for your or not.

Choosing the Right Type of Home.  There are many different types of homes in the marketplace and each type has it’s own pros and cons.  There is the Single family home, the multi-family home, condos, co-op, manufactured homes and module homes.  Understanding the type of home your are purchasing is another important step for you to take, as the different types of homes may have special lending requirements.  Education is key and that’s how I can help.

Understanding how long you plan on living in this new home.   Buying a home for what you can afford while accommodating your needs is a tricky balance, but can be accomplished.  You can also buy a smaller home now with plans of buying up as your family grows, or buying down as your family grows up.  Planning this out now will be helpful to you in the future.  Home values do go up and do go down, so ensuring that the home you buy is going to meet your needs for today and for the days to come is something to seriously consider.

So what’s the process?   While the internet does provides lots of information, many times the information that you find is either outdated or just does not apply.  Reviewing your situation with professionals that deal with the process daily is imperative to your success.  And working with a full-time real estate professional that can guide you is essential.   While the process can be generalized, each transaction has its’ own uniqueness.  However to give you an idea of the home buying process, it usually flows like this:

  • Pre-Qualification
  • PYT (Protect Your Transaction) Buyer Pre-Approval
  • Offer, Acceptance
  • Inspections
  • Contract
  • Loan Submission
  • Appraisal
  • Title
  • Final Loan Approval
  • Closing/Funding
  • and Moving In.

The process can be daunting, however it is also very exciting……you are moving forward with the purchase of your own home!  Choosing your team is imperative for a smooth process.

Karen Jones Banner with Disclosure

AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2018. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.  The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Karen Jones does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Karen Jones will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.