10 Steps to Buying a New Home
If you are eager to start afresh in a new home but do not have the information about all that goes into buying a new home, stop fretting as we are here to help. The process of buying a new home in Denver, Colorado can be a daunting prospect. However, if you follow a step-by-step approach you will be able to get the house of your dreams with minimum effort and hassle. Here is a look at the 10 steps you need to take towards successfully buying a new home.
Envision a House
Before starting to see houses up for sale in the market, it is beneficial to know what you are looking for. You have to have a clear idea of the things you need and want from your future house. Think about the size of the house, your preferred area, proximity to facilities like parks and schools. Know what you want before you start looking.
Get Your Credit Score Checked
In order to be pre-approved for a loan, a credit score of at least 650 is required. It is important to get your credit score checked to find out your financial standing before you start looking for houses. Credit score of more than 700 will help you get good mortgage deals.
Find a Good Lender
Once you have got your credit score up to mark, it is time to start looking for lenders. Do not hesitate from visiting a few lenders before picking the one that makes the most financial sense. Different lenders may offer different deals based on the same credit score and financial credentials. Choose wisely.
Get Pre-Qualified and Pre-Approved
It’s time to get pre-qualified for a loan with a lender that offers the most lucrative deal. Your mortgage banker will need you to disclose your investments, savings, and income in order to decide the amount he can lend you. Later you can pre-approved and receive a “loan commitment letter” showing a conditional commitment from your lender.
Get a Buyer’s Agent
After you have been pre-qualified, you can start looking for a good buyer’s agent, one who can help you find and negotiate a good property deal. Ask your friends if they know any good realtors that can get you the type of house you want. Interview a couple of agents and pick one with skills, experience and most number of satisfied recent clients.
Start Looking for Houses
A good agent will help you look for your dream house. See a few homes before you decide to settle for the one. It is important to take your time, as it is an important decision. When you visit a house, do not hesitate to check things like plumbing, electrical outlets etc. Make sure the neighborhood is safe and peaceful.
Make an Offer and Enter Escrow
Once you have decided to buy a particular house, make an offer to the seller through the buyer’s agent. It is important to negotiate a fair deal. Once you and the seller have come to an agreement the house will go into escrow. Deposit the “earnest money” with an escrow agent, broker or an attorney.
Get a Home Inspection
Your buyer’s agent will help you find the right home inspector. Close inspection to check for the strength and durability of the property is necessary. If an issue is to be found the purchase offer can be renegotiated with the seller.
Select the Right Loan and Get Appraised
Work with your mortgage banker to select the loan with rates you can afford. Select your monthly plan according to your needs. Your lenders will hire a third party appraiser to find an independent estimate of the value of the house.
Finish Your Paperwork
Sort out your paperwork with the help of a title company that has been arranged by the lender. Close the escrow. Sign all the necessary paperwork including loan documents and close the deal.
In conclusion, if you follow these steps, you will find the process of buying a new home, a breeze.
