Buying a home is the largest investment that anyone can make. It is no easy process, but it is a process which is well worth every effort. To relieve the stress and to make your home buying journey a little easier, it is good to find a real estate expert who can serve as your advocate and to help you purchase your dream home. A realtor can negotiate on your behalf with the seller, they can guide the buyer through the financial and legal paperwork, and inform you of the beautiful Louisville neighborhoods.
By understanding the home buying process, you’ll be able to make more educated decisions, have everything prepared, and know what to expect. Here’s a generic outline of the home buying process:
Lending Requirements:
Nowadays, it’s a good idea to get pre-qualified for a home. Your realtor can introduce you to the best lender, who will help you get pre-approved for a mortgage. Only you know how much you can safely pay for a monthly mortgage, but with the help of your realtor, you can determine what you can afford to pay and which loan option can work for you. The pre-approval process in Louisville requires:
- 2 recent pay stubs
- last two years – W2s
- list of assets or
- 2 years of tax returns
A lender will introduce the different Louisville loan programs available to you, such as an FHA, conventional, USDA, VA, or HomePath loans. A lender will also calculate how much of a down payment you will need and how much your monthly payments will be. Once you have been approved for a manageable loan, it is time for you and your real estate agent to begin home searching. The Louisville communities are very diverse and unique, which is why a local realtor is a welcoming aide.
The Home Search:
A reliable real estate agent can more accurately provide you MLS listings that fit your dream criteria for a home. Your agent will pose questions to help you focus on the style of home that Louisville has to offer, such as how much home do you need, its location, and what kind of home you’re looking for. Searching for the right home can take several weeks (which is often superseded by prior online searching). A Louisville real estate expert will alleviate a lot of foot work by providing innovative search features such as real time virtual videos.
Let’s Make An Offer:
Once you have found your potential new home, the next step is to make an offer. A true market value for your potential home is determined by comparing other properties in the community. Your purchase offer is made up of how much you can pay for the house, additional financial terms, and the purchase contract clauses which the buyer and the seller must agree upon.
The Finish Line Is In Sight:
At this point, it is important to secure an inspection of the property. The main factors in a home inspection report is the property’s structure. Some inspection reports are lengthy, but your realtor will note the more important items to look for and not to sweat the small stuff. If the inspection uncovers any problems, you can ask the owner to fix the issues or possibly negotiate for a lower price. In addition to an inspection report, it is now time to secure home owner insurance or mortgage insurance, whether it is a private mortgage insurance (“PMI”) or a mortgage insurance premium (“MIP”) policies.
You are near the finish line with a “closing” date. A final walk through of your potential home is required and you must make sure that your certified revenues are in place. At the “closing” the attendees are you, your agent, the seller and their representative, as well as a representative from the lender which conducts the meeting and will turn the keys over to you. Congratulations on buying a house!
