Steps To Take When Buying A Home: Part 2
Buying a home is a big process, but it doesn't have to be hard! Systematically following the appropriate steps can keep the process easy and manageable. Last week, we discussed the first five steps to take when buying a house. As a quick recap, we talked about:
- Identifying your budget
- Differentiating "needs" from "wants"
- Getting preapproved
- Hiring a real estate agent
- Making an offer
Of course, the home isn't automatically yours just because you made an offer. Here is a quick look at the rest of the home buying process.
Step 6 - Select A Title Company
Title companies are a hugely important part of the real estate process. Practically every penny involved in a real estate transaction must pass through the title company before being distributed to the appropriate individuals and/or organizations. Your title company will also be responsible for conducting a title search to ensure that there are no unknown liens or other hidden hazards surrounding the property in question, as well as coordinating all of the paperwork that is required for closing.
Step 7 - Get A Home Appraisal
Once the sellers have accepted your offer, it's time to get a home appraisal. While the appraisal value will certainly be good information for you, the appraisal is actually required by the lender. Your lender will not give you a loan for more than the home is worth, so he/she will need to know for sure what the home's current market value is. You won't be able to get a mortgage loan without an official appraisal of the home in question.
Step 8 - Get A Home Inspection
Home appraisals and home inspections are not the same thing, and they serve two very different purposes. Whereas the home appraisal is designed to determine the home's current market value, the home inspection is designed to determine the condition of the home and everything in it. This will help you identify where potential problem areas lie and if anything needs to be repaired before you close on the home. (That is, before these repairs become your financial responsibility!)
You're spending thousands (most likely hundreds of thousands) of dollars on your home; it only makes sense that you should get insurance to protect your investment. Home insurance will protect you, the homeowner, in the event that a natural disaster damages or destroys your home. Because your lender is the one who is making the initial investment on the property, he/she will most likely require proof of insurance before approving your loan.
Step 10 - Close On Your New Home
Take a deep breath... It's CLOSING DAY! All necessary investigations have been performed, all of the paperwork has been coordinated, and now it is finally time for the home to become yours. Closings are typically held at the title insurance company, and you will be required to sign multiple documents in order to complete the process. Once you've signed everything, you will be given the keys to your new home - and you're good to go!
There You Have It!
Some people think that buying a house at the Lake of the Ozarks is scary and overwhelming, but it really isn't that hard. If you have questions about the process or would like to learn more about real estate at the Lake of the Ozarks, give the Devine & Associates Real Estate team a call. We would love to work with you!
Devine & Associates Real Estate
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