Are you one of the lucky ones who’ve had your offer accepted on a home? Homeownership is one of the most exciting moments in your adult life, but it also comes with a myriad of responsibilities.
There are many important steps in the home-buying process and one of those is obtaining homeowner’s insurance. This will protect your investment and belongings in case something unexpected happens to the home.
You will want to spend some time comparing home insurance coverage and rates. You can research home insurance rates online or you can work with an insurance agent to make sure you have the coverage needed for your home.
We’ll provide expert advice on how to keep that good luck with home purchasing tips including homeowners insurance, your home inspection, and strategizing with your real estate agent to negotiate with the seller. We will also discuss five key steps in the home-buying process.
The Importance of Homeowner’s Insurance
Homeowner’s insurance is essential when buying a new home. Your home will most likely be your biggest asset and you don’t want to be undercovered in your insurance policy. This is also not the time to cut corners or find coverage for the bare minimum.
Homeowner’s insurance prices will vary depending on location, the cost of your home, and the types of coverage you need. The best way to handle homeowner’s insurance is to research different companies and compare rates among the different insurance companies.
Why do you need a home inspection?
A home inspection is one critical step in the process of buying a home. It is encouraged that the homeowner be present for the home inspection.
A qualified professional will inspect the home in detail, examining things like wiring, heating and cooling systems, plumbing, the roof, the foundation, windows, and any other structures like garages or pools. They will also measure the home, and yard, and provide a detailed inspection report of the home.
The inspection professional will make a list of recommendations that should be addressed in the home. It is up to the home buyer to determine if additional negotiating is needed to repair or fix things found in the home inspection. You can also withdraw your offer if there are major repairs or if the seller is not willing to make the repairs you request.
Negotiating
Another important step in the home buying process is negotiating your offer. This could mean negotiating the purchase price, but it could also be negotiating the closing date, closing costs, repairs from the inspection report, or other stipulations. If you are also selling a home, you may negotiate the offer to be contingent on the sale of the other home.
5 Key Steps
You should be saving for a down payment and improving your credit score before you start the home buying process. Once you start this process, it requires patience throughout the many steps. It can feel like a waiting game, but there are many important things that have to be done to keep the process moving smoothly.
#1 – Choose a Real Estate Professional
A real estate professional will help lead you through the home buying process, especially if you are a first time home buyer. You can ask friends, family, or colleagues for recommendations or you can research local realtors online. If you are buying a home, the seller will usually cover the realtor’s commission fee.
They can attend open houses, schedule showings, help you negotiate, and prepare the paperwork for the offer. A realtor can answer your questions about the home or point out important information to help you to make a decision about buying the home. This professional will be an important part of every step of the home buying process.
#2 – Get Pre-approved
Before you start shopping for a new home, you should work with mortgage lenders or banks to find out the amount you are pre-approved for. You should get loan estimates from different lenders to compare rates and closing costs.
The lender will use your credit scores, assets, and income to determine the pre-approval amount. This gives you a range or estimate of what a financial lender will approve for the amount of a home loan.
The lender or financial expert can also answer any questions you might have about your loan. The pre-approval process will help you determine your budget for mortgage payments as well as how much you need for a down payment.
You can look at homes without a pre-approval, but some real estate agents and some sellers will not negotiate or take any offers seriously without a pre-approval. Some loans also have stipulations that you should understand before submitting an offer on homes.
As long as your finances don’t change through the home buying process, your pre-approval guarantees that you will be able to obtain the loan. You will need to continue to work with your mortgage lender through the home buying process and make sure you submit any documents in a timely manner to keep the process on track.
#3 – Submit an Offer
Once you have a pre-approval and you have been looking at homes, the next step is to submit an offer for the home you like best. If your offer is accepted, there are many timelines that start for inspections, appraisals, and final mortgage lender approval.
An offer will include the purchase price, the closing date, and any other stipulations to be included in the contract. It can also include furnishings, like a refrigerator that you would like to stay in the home.
#4 – The Waiting Game
Once your offer is accepted, now you just need to be patient until the closing date. It may seem like you are just waiting but there are lots of important timelines and processes that are happening behind the scenes. The home inspection and home appraisal will happen during this time.
Make sure you are keeping in touch with your realtor, mortgage lender, and the title company. The title company will handle the closing so they may ask you for information or contact you to schedule a time and location for signing the closing documents. You also need to have your homeowner’s insurance secured at this time.
You may have to submit additional financial information, and homeowner’s insurance information, or sign additional paperwork during this time. Always respond to communication in a timely manner so it doesn’t slow down the process or delay your closing date.
#5 – Closing
After you have been patient throughout the timeline of purchasing your new home, it’s finally time for the closing. The closing date is when all of the important documents are signed and the home is officially yours.
You will get the keys to your new home at the closing. After everything is signed, sealed, and delivered you can pack up the moving truck and unload your belongings into your new home.
Author Bio:
Melissa Morris writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. She is a university professor and has been through the home-buying process three times.