Purchasing Real Estate is a significant investment involving an intricate process. To ensure a successful outcome, this step-by-step guide outlines the essential stages of the buying process. Our goal is to provide you with the working knowledge to help you understand – and enjoy – the experience of fulfilling your real estate dreams.

1. Assess your financial situation

   The first step in purchasing a property is to assess your financial situation. Determine your
   budget by considering your income, savings, and debts. Calculate the amount you can afford for a down payment and monthly mortgage payments. Aiming for a down payment of at least 20% of the property price can help you avoid private mortgage insurance (PMI) and secure better loan terms.

2. Get pre-approved for a mortgage

   Before beginning your house hunt, obtain a mortgage pre-approval from a reputable lender. Submit your financial information, such as income, credit history, and employment details, to the lender for evaluation. A pre-approval letter demonstrates to sellers that you are a serious buyer and establishes your borrowing capacity, which provides a clear idea of your budget.

3. Hire a real estate agent

   Engaging a professional real estate agent is essential. A knowledgeable agent, like Kristen Spellman, has in-depth knowledge of the local market, helps you find properties that match your criteria, negotiates offers on your behalf, and assists with paperwork. Choose an agent with a good reputation and relevant experience in your desired area.

4. Define your requirements

   Clearly define your property requirements, including location, size, type, number of bedrooms and bathrooms, and any specific features you desire. Consider long-term needs, such as proximity to schools, workplaces, and amenities. Communicating these preferences to your real estate agent helps streamline the search process.

5. Start house hunting

   With the help of your real estate agent, start viewing properties that meet your criteria. Attend open houses and schedule private showings. Take notes and photos of each property for later comparison. Thoroughly inspect each property, considering both positive attributes and potential drawbacks.

6. Make an offer

   Once you find a suitable property, work with your real estate agent to make a competitive offer. Your agent will help determine an appropriate offer price based on market analysis and the property’s condition. The offer includes the price, proposed closing date, and any contingencies, such as a home inspection or financing approval.

7. Conduct a home inspection

   After your offer is accepted, schedule a professional home inspection to assess the property’s condition. The inspector examines the structure, systems, and components, identifying any issues that may require repairs or impact the property’s value. Review the inspection report carefully and discuss any concerns with your agent. You may negotiate repairs or a price reduction based on the inspection findings.

8. Finalize your financing

   Work closely with your lender to finalize the mortgage application. Provide any additional documentation required and lock in the interest rate. The lender will conduct an appraisal to ensure the property’s value aligns with the loan amount. Once approved, you will receive a commitment letter outlining the loan terms.

9. Close the deal

   Before closing, perform a final walk-through of the property to ensure it is in the agreed-upon condition. On closing day, sign the necessary paperwork, including the mortgage agreement and title transfer documents. Pay the closing costs, which typically include loan origination fees, title insurance, and property taxes. After completing the paperwork, you will receive the keys to your new home.

Ready to make your property dreams a reality? Realtor Kristen Spellman is here to guide you every step of the way. Contact her at 971.338.0022 or email her today to begin your journey.