How To Purchase a Home: A Step-by-Step Guide
(Because at some point, you’ve gotta stop looking at the picture and sighing)
| May 17, 2018
You’ve found a home you love and you’re ready to stake your claim. For most buyers, purchasing a home can be confusing, intimidating, and a less-than-ideal way to spend several months, but don’t let off-putting factors like loans, inspections, and competitive offers keep you from movin’ on up.
It’s really not that scary once you’re armed with a little wisdom, an understanding of the process, and foolproof advice that will help you buy like a boss. That’s where we come in.
With some help from Peter Murray, an expert realtor for RE/MAX Plus, we outlined a sweet step-by-step guide that will take you from a daydreamer to a home-buying aficionado. So get ready to start packing and picking out paint colors.
Step 1: Find a Realtor
Peter said that the whole process begins with finding a trustworthy realtor, not a real estate agent, and yes, there’s a difference. (Sorry, agents. Nothing personal.) Realtors have more requirements, additional training and education, and in general, more insight.
They’re also required to follow a Code of Ethics dictated by the National Association of Realtors, to ensure they’re following the best interests of their clients.
He added that realtors, unlike agents, will disclose all known fees up front, so you don’t end up with unhappy surprises. Agents may not offer the same courtesy and may end up tacking on some hidden fees in the end. Who wants that? Not you, right?
Peter broke down some realtor-selecting dos and don’ts for us.
Realtor-Hunting DOs:
- Get a referral from a friend: This realtor will probably have a personality similar to your friend’s, and that will cancel out any potential awkwardness.
- Get a full-time realtor: They will have more experience and wisdom to share with you than their part-time counterparts.
- Get a seasoned vet realtor: You want someone who knows what they’re doing – someone who eats, breathes and exudes realtor-ing.
“Your home will be a huge asset in your life. You want to make sure you find the absolute best, most knowledgeable and trustworthy realtor to help you with such an important process as buying your next home,” said Peter.
Realtor-Hunting DON’Ts:
- Work with a part-time realtor: “No offense to them, you just want someone with more experience,” said Peter.
- Make your selection from a website: Realtors who show up on websites are paying top dollar to be there.
- Work with anyone who gives you bad vibes: If any reservations arise while initially speaking with a realtor, don’t hesitate to swipe left and bounce.
Step 2: Get Pre-Approved for a Loan
Unless you’re swimming in stacks of cash, chances are you’ll be needing a loan. Your realtor or your friends may have recommendations for a lender who could work with you, or your own bank may offer loans. Just like your realtor, it’s important to be comfortable with the lender.
“A good lender should care about your unique financial situation. If on paper, you can afford a $200,000 loan, but you know that realistically you can actually only afford a $100,000 loan, your lender should be sympathetic to that,” said Peter.
Do your research and shop around to determine what you know you can afford, and don’t let yourself be bullied into more than that. But what kind of credit score do you need to qualify for a loan, you may ask? Read Full Article
