Buying real estate is one of the biggest investments a person will make in their lifetime. Below is a checklist of steps to follow when looking for your dream home.
Step 1: Credit Check
The vast majority of homeowners purchase their home with some type of home loan or mortgage. The kind of home loan or mortgage you get is heavily dependent on your credit history since all prospective lenders will look at your credit report before offering you any home loans or mortgages. It is important to make sure your credit is in order when deciding to purchase a home.
Step 2: Get your Mortgage Pre-Approved
Investigate potential lenders after you have your credit checked. The lender (banks, brokers, wholesale lenders) can check out your credit history, and give you an official letter stating how much of a mortgage you qualify for. Having this number in writing will let you know how much of a loan or mortgage you qualify for and make you more attractive to sellers.
Step 3: Identify What You’re Looking For
It is very useful to list on paper what you actually want in your property. Real estate experts suggest breaking down your list into:
(1) “Must-have features” – this may include the size of property you want, number of rooms, location, etc. Be as broad as possible – the point is to identify what must be on that property in order for you to be interested. (2) “Absolutely Not” – this is the opposite of your “must-have features," and represents features that you will not tolerate.
Step 4: Finding a Realtor or Real Estate Agent
The vast majority of people utilize the services of a realtor or real estate agent in their quest to buy real estate. These professionals are trained to help you with your search and have insider access to real estate listings within your price range. More importantly, they are intimately familiar with the whole real estate buying process and can advise you through the various steps.
Step 5: The Search Is On!
This is typically the most exciting time. Your real estate agent can help you to find the real estate you are looking for in your price range and in the location you desire.
Step 6: Making An Offer
Before you make an offer, be sure to be critical of the property – its structure, features, contract contingency basis, deed restrictions, how much renovations may be needed, etc. The input of your real estate agent is paramount here, as they possess the know-how and experience to properly advise you with your best interests in mind. When you both feel that this is the piece of real estate you want to pursue, then you can make an offer.
Step 7: Real Estate Inspection
You’ve made the offer or the offer has been accepted, now you must confer with your real estate agent or other advisors to find out when inspections should be handled and if additional types of testing are important for your specific area. It is usually the seller’s responsibility to conduct this home inspection, and to carry out and fund any possible work orders that result from a less than satisfactory inspection. You should not close the deal until all home inspections have been completed.
Step 8: Closing the Deal
Once you and the seller have agreed to the deal, there will be plenty of administrative tasks (paperwork) to be done in order to finalize the deal. Although this may be tedious, you should be very detailed-oriented in this task to avoid any mistakes that could prolong the process.
Overview of the Buying Process
Licensed to Sell Real Estate in the State of Iowa
