The process of buying a new home

Purchasing a new home is not something we do everyday. So, it may be confusing and have issues that create concern. Even if you have purchased one in the past, laws and regulations change almost daily. With the help of a real estate professional, the process can be smooth.

Here are clear and practical steps for making a home purchase. Watch for more details on each subject in following posts.

Step One: Loan pre-approval
Before you begin to shop for a home, enhance your buying power by getting Pre-Approved or Prequalified. Don't know the difference? Watch for following posts to provide details. (Here is a link for details on getting pre-approval.)

Step Two: Learn the Market
Drive around the areas that you would like to live.  Take a look at the neighborhoods to find those that appeal to you, but be realistic.  Research the cities, the business and schools on line.

Step Three: Choose a Real Estate Professional
Select an experienced real estate professional to help you through the home buying process. Make sure it is one that is familiar with the locale that you are considering.  Start looking at houses in your price range and that fits the profile of the new home you would want.  Make sure you spend a little time at this, unless of course you have to move for some reason.  The more you look at the better you will feel about the home that will be right for you.

Step Four: Make the offer
Through your real estate professional make an offer on a house that you like.  The agent you are working with will provide you with comps from the area that help you craft an offer that is right for the house.  Keep in mind your mortgage limit established by your preapproval, your down payment and the closing costs.  Make sure you include the right to inspect the home by a qualified inspector.  This will cover you both from purchasing a home that has major problems or give you an idea of the cost of repair if you proceed with the purchase.  If you follow the outline in the offer, it also allows you to get out of the agreement if there are big problems with the house.

Step Four: Secure Your Mortgage
This is when you return to the lender you were preapproved for a mortgage.  The lender will want a copy of all the paper work so they can begin their work to get the mortgage approved for that house.

Step Five: The closing
Relax with the knowledge that you have two teams working to make your purchase as easy as possible. The closing team will get everything in order and be clear and precise with the paperwork. Also, a real estate professional that will be reviewing the documents to make sure they are correct. 

Step Six: Move in and enjoy the home of your dreams.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.