Buying a home is the quintessential American Dream for many and the reality isn’t too far off the mark. Purchasing a home is one of the easiest ways for a family to attain wealth with minimal risk when the home is chosen strategically. The key is to understand the entire buying process and how each step can affect your investment returns. An informed buyer is a prepared buyer.
What are the steps to purchasing a home? There is more to purchasing a home than scrolling and dreaming of homes on a website. It is taking informative steps, researching, interviewing lenders, agents, title agencies and more. It is understanding the market, finding desirable neighborhoods and feeling out the market demand.
Looking at buying your first home? This 10-part blog series will provide tips and guidelines. Helping you understand the buying process, enjoy the experience and improve profitability of this purchase. We want to help prepare you on your journey to purchase your first home.
Identify Your Goals. Understand the long-term wants for you and your family.
- What are your goals?
- How much can you afford?
- What is the ideal home for my budget?
Find the Right Lender. It often surprises people to learn that pre-qualification can take less than 15 minutes. We can make it happen in person, by video or by email. Even if you’re on the fence about if homeownership is right for you, you should meet with a loan officer and discuss options. Often, the issue is that people are not sure about their credit. But generally, if you’ve been working for the last two years and have decent credit, you can get into a home.. –Jamie Tapia, Alterra LA Area
- Find a lender you trust, providing excellent service.
- Get pre-qualified in a matter of minutes.
- Receive a Loan Estimate, outlining the costs associated with your purchase.
- Find an agent with recommendations from friends, family and your lender.
- Shop for the ideal home, considering budget, amenities and neighborhoods.
- Discuss an offer with your agent. Consider all offer details. Be prepared to counter offer.
- Always perform a home inspection prior to purchase. Be prepared to spend $500.
- Receive the home appraisal. This is the market value of the home and required by all lenders.
- Find an insurance agent with recommendations from friends and family.
- Research policies, ask questions about coverage situations and work with the lender and agent to see if additional coverage is needed (like flood, personal property, jewelry)
- The closing is the process of transferring ownership to the buyer. You’ll receive a Closing Disclosure (CD) a few days prior to closing. Read it closely.
- At closing, you’ll sign all of the documents, transfer necessary funds and receive your keys. CONGRATS!
Remember, homeownership is the easiest way to attain equity. This acts as a savings account that the you cannot touch. Appreciation in the home’s value increases your wealth during occupancy and profit upon selling the home.
At Alterra, our team of lenders want to see you succeed. We want you to enjoy the process, find your perfect home and start building wealth. Alterra lenders understand the pain points of the buying process and work to alleviate any questions, concerns or misunderstandings.
Alterra provides superior home loan products and services for a diverse market of buyers. Chat with an Alterra lender today to learn how easy and sensible it is to purchase a home to increase financial wealth.