Home Buying Process Explained | Accurate Mortgage

The Home Buying Process Explained

1. Get pre-qualified.  Contact Accurate Mortgage Group today and let a seasoned professional help you get started.  It only takes a few minutes to complete the application and we can have a pre-approval letter ready in 15 minutes.

2.Determine the price range you are comfortable with.  Being pre-approved for a dollar amount does NOT mean you have to spend all that money!  Plan ahead for that new roof, HVAC repair or kitchen remodel that may cost you a lot of money out of pocket in the future and look for a home in a price range that fits comfortably in your budget.

3.House hunt!  Many begin their search online using Realtracs or Zillow.  Once you have a few properties in mind, set up appointments with a reputable realtor to view the properties.  You may also ask friends and family about properties in neighborhoods you like.  It is not uncommon for a family to view up to 20 homes before making a decision to make an offer on one.

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4.Make an offer on the home.  Your realtor will negotiate with the seller’s realtor until an agreement can be reached.  Final price and closing costs can all be negotiated in many cases.  You will get the best deal if you have a realtor that understands the market, and can value the property and associated closing costs correctly.

5.Lock in your interest rate with your lender as soon as your offer has been accepted.  If you are pre-approved, the process moves quickly now and you could close on the home within 21 days.

6.Schedule an inspection with a reputable home inspector.  Your realtor will also help you negotiate the costs of any necessary repairs prior to closing.  You may choose to have the seller repair everything, or you may choose to make some repairs yourself and purchase the house for a lower price.

7.Arrange for Homeowner’s insurance.  Accurate Mortgage Group recommends you shop the coverage with several insurance companies to compare rates.  Bundling your home with your car insurance is usually the most efficient way to go.  And you may not know it, but insurance companies pull your credit score and use the FICO number to determine your rates on car and homeowners insurance.  Just one more reason to have your credit in the best shape possible before purchasing your home.

8.Consider a home warranty plan.  There are many pros and cons to a home warranty plan, particularly depending on the age of your home.  Consider your options and plan for the time you anticipate being in the home.

9.Closing Day!  This is the exciting day where you sign the documents and are handed the keys to your new home!

Here are critical things to remember about the process:

  1. Establish a budget that you are comfortable with before purchasing the home.   Know that there will be unexpected costs throughout the life of your home loan and have an emergency fund for these instances.
  2. Use a trusted realtor to help your with your search and all negotiations.  This can save you thousands of dollars over the life of your loan.
  3. Carefully compare loan programs considering ALL costs.   Different mortgage companies present costs in different ways, which can make it challenging to truly compare.  At Accurate Mortgage Group, we walk you through every detail of the loan and make sure you understand all costs associated with it.
  4. Do not apply for new loans after being pre-approved for your loan.  This can affect your credit worthiness at closing time.
  5. Do not close on the house until all items on the punch list have been completed.  Once the builder or seller has closed, you will have a very hard time getting them to complete any additional work, particularly small projects.