The mortgage pre-approval
Unless you’ve been saving your pennies for a while and can pay cash for a house, you will need to get a mortgage. In order to know how expensive a house you can buy, you will need to get pre-approved for a loan. This is the first step in the home buying process

In today’s real estate market and with interest rates as low as they are, it is more cost-efficient to buy a home rather than rent one. Think about it. When you buy, you are investing in your own future. When you rent, you are helping your landlord to invest in his or her future! There also are financial perks like tax deductions and home equity that come along with owning a home.  

So that you don’t enter the home-buying process blindly, it is a good idea to meet with a bank or lender, who can help you determine a range of home prices that you may be approved to buy in.

When it comes to financing a home, it is a good idea to shop around for the best mortgage terms. Many buyers often start with their own personal banking institutions or credit unions. The federal government offers competitive loan programs for first-time homebuyers as well. Buyers are able to seek out mortgage rates from several lenders before selecting the one that is best for them.

Yes and you can also buy a home with poor credit and no credit 

The amount of money you’ll need to put down on a new home depends on the price of the home you select, along with the mortgage terms that you’re approved for. However, you can qualify for down payment assistance to cover down payment and closing costs.

PMI or private mortgage insurance is something that lenders use to protect themselves against a buyer who defaults on their home loan. PMI is money a buyer pays along with their principal and interest to reimburse a lender in case they default. This fee is usually lumped into a buyer’s monthly mortgage payment until about 80% of their home is paid off, at which point PMI is typically cancelled.  

When a first-time homebuyer is looking to purchase a home, it is important to realize that a monthly mortgage payment does not cover all of the monthly expenses that go along with home ownership. Often times, a monthly mortgage payment covers the principal amount borrowed, homeowners’ insurance, property taxes, interest fees and PMI, if applicable. Monthly mortgage payments do not cover things like utilities, cable and internet service or homeowners’ association fees.

Technically, it is possible to buy a home without a professional real estate agent. It’s just a whole lot harder to do on your own. Not only have professional real estate agents received training to help buyers, but they’re also up-to-date on current market conditions, real estate procedures and the closing process. They’ve also got helpful industry contacts, like lenders, appraisers and other service professionals at their disposal that can make the buying-process go more smoothly. Finally, a professional real estate agent is happy to represent a buyer while making an initial offer, negotiating on price and at any other time during the home-buying process.

After buyers and sellers agree on a home’s price, the closing process begins and it typically lasts between 30-60 days. During this time, the purchase contract is drawn up and signed, financial documents are finalized, home inspections and appraisals are completed and various other legalities are handled, too. On closing day, both buying and selling parties meet (often for the very first time!) to sign final documents and hand over the keys!


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