The Steps To Purchase a Home
Hello there, I am Alex Huereca Texas Realtor® in El Paso Texas with ClearView Realty, this video is for anyone that is thinking to purchase a property right now.
The year 2021, Crazy market for sellers and buyers. Here are the steps when you are looking to purchase a home, this is mostly for home buyers but sellers should know this as well.
- Find a Realtor
- Get Approved
- Find Your Dream Home
- Submit an Offer
- Home Inspection
-Find a realtor.
A realtor will be able to guide you and point you to different lenders that might be able to help you depending on the type of income that you have, the credit score, credit report and many other factors. Not all the lenders can approve you, but Realtors® know the lenders that can work with certain buyers, and they can’t help others. If you have perfect credit score, and have regular paycheck stubs, most lenders will be able to help you, but a good Realtor® will recommend you to a lender that will give you excellent interest rates and lower fees. This is one of the most important steps that will save you money at closing and for the term of the mortgage loan.
The second step is to get approved through a lender. Be approved and know your purchase power, knowing what you can purchase will keep you from wasting time looking at homes you can’t afford or missing the opportunity on a home that you didn’t know you could purchase.
-Find Your Dream Home.
The next step once you’re approved is go and look and find your dream home, find the house that you are looking for, the one that meets all your requirements, and within your budget. Remember, unless you are custom building a home with all your needs and wants, very likely you will have to compromise on some of your wants when purchasing a resale home or a track home.
-Submit an Offer.
The next step will be to submit an offer if you find the one that you really like. When submitting an offer listen to your real estate agent’s advice and consider the advantages if your offer gets accepted, but also consider the drawback if you lose the home to another buyer. Once your offer is accepted, the next step will be to do an inspection on the House.
Right now, is a sellers’ market, and a lot of sellers are not doing any repairs, however I still recommend you hiring a professional home inspector registered and licensed with the Texas Real Estate Commission (TREC) to provide you with a home inspection report, so at least you know what you are dealing with. Maybe the house is in perfect condition, maybe needs a few repairs, but worst-case scenario, the home has foundation problems that could cost you a lot of money to repair. It’s best to know ahead of time, and not find out after you close on the House.
The next step it will be for the lender to order the appraisal for the house. If you are financing the purchase of your home, the lender will require an appraisal and the appraisal report is going to tell the lender if the house is worth the amount of money that they are lending you. If the appraisal comes back short, which means the home didn’t appraise to the purchase price, you pretty much have two options. One is negotiating the reduction on price to appraise value or negotiating a price reduction where you as the buyer pay part of the difference and the seller the other part by reducing the price. The other option is to cancel the contract and depending on how you submitted your offer you may have the right to cancel the contract and get your Earnest Money back. You Definitely need to follow your agent’s advice on this situation. (It is a seller’s market, and many buyers are paying the gap out of pocket)
-Schedule The Closing.
If you agreed on your appraisal and everything is good to go, then the next step is scheduling the closing date and time with the title company. Once you go to the tile company’s office, there you sign all the documents accepting tile to the property and sign the promissory note saying you will make your payments and if you fall behind can get foreclosed, and that you will keep the property always insured. Of course, it is much more than that, but in summary that’s the important stuff. Once the buyer and seller sign all the documents, the lender will send funding authorization to the title company and the title company will disburse payments to the lender doing your loan, payoff the mortgage company from previous owner, pay property taxes, real estate commissions, buyer and/or seller liens, judgments, and once that happens, CONGRATULATIONS you will receive keys for your new home.
The steps to purchase a home are simple, however every step is not easy so if you need help if you need advice, assistance from a Realtor® we are here to help!
My team is ready to help all the buyers and sellers, if you are a seller selling your house and buying a house, we can help you out as well!
This information is intended for home buyers and sellers in El Paso, TX. Real estate is local and the process and requirements may be different in other cities and states.
If you need assistance finding a Realtor® in other cities, we can help you find the best ones for the area.