First Steps To Buying Your First Home

Buying a house can take as little as a few days if you're buying in cash, or can take years if you're counting the amount of time it takes you to save money for a down payment and decide where to live. In a competitive housing market, you may put in multiple offers on homes before one is accepted. Conversely, mounting worry over a housing recession could lead more sellers to pull their homes from the market, making it more difficult to find a suitable property. If you already have your money saved and have a good idea of the neighborhoods and type of home you want, the process will probably take you two to six months. Ask a local real estate agent for a more accurate timeline based on your local market conditions.

first steps to buying your first home

Buying a house requires a lot of time and effort, but these 10 steps can help make the home buying process more manageable and help you make the best decisions for your personal and financial situation.

This will tell you the price range of the homes you should be looking at. Later, you can get preapproved for credit, which involves providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so your lender can verify your financial status and creditworthiness.

Start touring homes in your price range. It might be helpful to take notes (using this helpful checklist) on all the homes you visit. It can be hard to remember everything about them, so you might want to take pictures or videos to help you remember each home.

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent might be able to help you arrange having this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.

Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third-party company and is independent from the lender. The appraisal will let all the parties involved know that you are paying a fair price for the home.

At closing, you will sign all the paperwork required to complete the purchase, including your loan documents. It typically takes a couple of days for your loan to be funded after the paperwork is returned to the lender. Once the check is delivered to the seller, you are ready to move into your new home!

This is a time to determine your homeownership goals. Do you need more space for a growing family? Some buyers want a yard for their pets or outdoor hobbies. Others want to invest in a home and build wealth.

Buyers have seven days after an inspection to decide to purchase or walk away from the sale. If you choose to waive the home inspection contingency in your offer, you choose to purchase the home as is. But an inspection is still recommended for your own information.

Homeownership is a journey that can start well before you ever consider pre-approval. Understanding the timeline for buying a house will help you prepare for the process and eventually buy the home of your dreams.

RateShield Approval is a Verified Approval with the additional feature that you can lock your interest rate in for up to 90 days while searching for a home. Even better, if rates fall at any time during that lock time frame, you have a one-time option to move down to the lower rate. You may see this referred to as a float-down option.

Your real estate agent will represent you throughout the home buying process to ensure you find the right home, ask the important questions, make an appropriate offer, have the power to negotiate and receive the necessary disclosures. Perhaps even more important is having a real estate expert in your corner can provide some invaluable peace of mind.

At this point in the process, your lender will require the home to be appraised before they agree to release any funds. A home appraisal estimates how much a home is actually worth based on comparable sales in the area, market trends, public records and a comprehensive inspection of the property.

Homeowners insurance covers damage to your home and its surrounding structures as well as stolen or damaged personal property. There are varying levels of coverage, ranging from basic to comprehensive, so be sure to do some research into all available options before deciding which home insurance product is right for you.

The final step to buying a house is, of course, closing on your new home. When that time comes, make sure you review your Closing Disclosure, which will outline the terms, final closing costs and any outstanding charges or fees included in your loan. Your lender will send the disclosure to you at least 3 business days before closing.

During closing, the property title will pass from the seller to you. A closing agent will oversee this process, which typically takes place at a title company, management firm, escrow office or your home.

Step one, as noted at the top of our list, is to check your credit score. Before you get into finding a lender, real estate agent or even looking at homes, you should take a look at where your creditworthiness stands. Good and excellent credit can qualify you for the best loans and interest rates.

Buying a home can be the largest purchase many of us make in our lifetime and, while exciting, can also be stressful. With so many factors to consider and so many online sources available, it can be difficult to know where to start. We know that buying a house requires a lot of time, effort, and research, but knowing what steps to take can make the home buying process easier.

It's also important to account for additional expenses, such as moving costs. You'll also want to consider how the new location may affect your commute and how much you typically spend on gas each month. While these may seem like small costs compared to buying your first home, they'll add up over time.

After you've determined your ideal monthly mortgage payments, you still need to factor hidden costs into your budget. Making the move to homeownership leads to new expenses that you may not have considered. Some of these include insurance, property taxes, home inspection fees, closing costs, renovations, and maintenance fees. These unexpected costs can quickly add up.

Finding a great real estate agent is a crucial part of your home buying experience. While there are many real estate agents out there, you'll need to find one that's knowledgeable about the specific area you're hoping to move to. A quality real estate agent will be reputable, informed and help you at every step of the process.Teaming up with a real estate agent who has your goals in mind will help make the home buying process easier. Make sure to be thorough when discussing your needs. Whatever is most important to you, be sure to communicate to your real estate agent.

Now that you've narrowed down your price range, are pre-qualified for your mortgage loan, and have found a real estate agent, you're ready to start shopping for your dream home. Your real estate agent will be able to help you narrow your search to homes that meet your budget and location requirements.While your real estate agent will likely already be familiar with the community, it doesn't hurt to do a little digging on your own.

It's okay to take as much time as you need when searching for your new home. After all, you want to be sure the house you've chosen is right for your unique needs. When you've settled on a home and are ready to move forward, your next step is making an offer. Your real estate agent will help by assessing the value of comparable homes in the neighborhood. Then, you and your real estate agent will determine an amount that reflects the value of the home and present your offer to the seller.Once you and the seller reach an agreement, the house will go into escrow. During this time, all of the remaining steps in the home buying process will have to be completed.

Now that you have made an offer on a home, you'll want to get a home inspection. While you aren't required to have one done, it's highly recommended. When searching for a home inspector, seek out recommendations from friends or family, or ask your real estate agent for a list of home inspectors they've worked with in the past. Getting your home inspection taken care of within the contingency period of your offer allows you to renegotiate based on the findings of the inspection.

The next step in the home buying process is to get a home appraisal. Your lender will arrange for an appraiser to verify the value of the home. The appraiser isn't associated with the lender or agent, which means you can trust them to provide an unbiased estimation of your home's value. Knowing your home's overall value helps your lender confirm your home has been valued appropriately. Additionally, this means you'll have a professional assessment documenting how much your home is worth.

Your home has been inspected and appraised, now you're ready to close. This process can vary slightly depending on which state you're in, but you can likely expect additional paperwork and closing fees. Closing costs may include things like attorney fees, title insurance, or property transfer taxes. Be sure to review your closing costs with your real estate agent.

We offer a variety of mortgages for buying a new home or refinancing your existing one. New to homebuying? Our Learning Center provides easy-to-use mortgage calculators, educational articles and more. And from applying for a loan to managing your mortgage, Chase MyHome has everything you need.

Whether you're determining how much house you can afford, estimating your monthly payment with our mortgage calculator or looking to prequalify for a mortgage, we can help you at any part of the home buying process. See our current mortgage rates, low down payment options, and jumbo mortgage loans. 041b061a72