Steps To Buying A Home - Part 2

Last week, we talked about the first four steps to take when buying a home. You can view in-depth descriptions of each of these steps on our blog from last week, but here's a quick summary of what we talked about:
  • Step 1: Start Your Research
  • Step 2: Get Prequalified or Preapproved
  • Step 3: Hire A Real Estate Agent
  • Step 4: Tour Homes
Taking these steps will build the foundation for a fun and successful home search at the Lake of the Ozarks. Once you've completed these four steps, it's time to get started on the remaining five.


Step 5: Make An Offer
Once you have found a home you love, it's time to make an offer on it. There are no rules governing the type of offer you can make - you can offer full asking price, or you can offer a few thousand dollars less. Your real estate agent can help you strategize on what would be a good offer and what (if any) additional items to include in your offer (such as furniture pieces that may have been left in the home). Once you submit an offer, the seller can choose whether to accept your offer or submit a counter-offer.

Step 6: Choose Your Loan
Now is the time to work with your mortgage lender to select which type of home loan you wish to apply for. If you completed step two and have already been prequalified or preapproved, you'll be one step ahead in the process. If not, now is the time to go back and do this. Work with your lender to officially decide which type of mortgage loan will best suit your needs and to determine the appropriate steps to take for the approval process. 

Step 7: Get A Home Inspection
It is very common for offers to be contingent on home inspections. Once you and the sellers have come to an agreement and a contract has been signed, it's time to hire a home inspector to thoroughly examine the property. A proper inspection can reveal previously unknown issues with the property so that they can be repaired before the sale closes and they become your responsibility. The inspection can also reveal weak areas that may become problems in the future. You can choose not to have the repairs made before the sale, but the inspection is still important because it allows you to be fully aware of all potential problem areas before you purchase the home.

Step 8: Get An Appraisal
Before your loan can be approved, you will have to hire a professional appraiser to evaluate the property. The official appraisal will tell you what the home is technically worth, as this number is often different than the agreed selling price of the home. Appraisals are an important part of the home buying process because lenders will not approve mortgage loans for amounts greater than the home's actual value. Without the official appraisal, your loan will not be approved.


Step 9: Close On Your New Home
Once all the little details have been attended to, it's time to close on your home! Your Lake of the Ozarks title insurance agency will work to make sure there are no issues with the title and to coordinate between you, the seller, the real estate agents, and any other involved parties. Your title company will also provide all of the documents required for closing, such as the Warranty Deed, Bill of Sale, and the affidavits.

Congratulations On Your New Home!
Once all of the paperwork has been signed, the home will be officially yours! Now you can begin the process of moving in and getting settled in your new home at the Lake of the Ozarks.

If you're thinking about buying a new home, please keep Arrowhead Title, Inc. in mind for all of your title insurance needs! We've been proudly serving the Lake Area for over thirty years, and we would love to help you buy your new home at the Lake of the Ozarks.

The Lake of the Ozarks' Most Trusted Title Company

Comments

Popular posts from this blog

Title Commitment vs Title Report

Why Would I Need a Title Search vs Owners and Encumbrance

What Happens If You Don't Pay Your Personal Property Tax?