The process of purchasing a home is just that — a process. Consider the steps involved as a roadmap. I’ll keep you informed on potential shortcuts or on when your smooth journey to homeownership might get jammed up.
First of all, is your credit score in the 600s or better? If not, drop me a note; I’ll send you some instructions on how to improve your credit score. Next, you’ll want to gather some financial documents (income tax returns, W2s, pay stubs, bank statements, etc.) you’ll submit to a mortgage lender to be preapproved for a mortgage. There’s a whole new set of mortgage concepts and terms you’ll learn. It is possible that we can locate a home whose monthly mortgage isn’t too far off from what you’re paying in rent.
It’s time for us to talk and get to work once you’ve been preapproved for a certain loan amount. We will need to discuss your “must have”s and your “wishes” for your home. That will include location/area, style, comfort with repairs, price, and other pertinent details (like a fenced backyard might be a “must have”). I’ll have you sign a Buyer’s Representation Agreement since my job will be working to find you the best match available.
We will both search for homes, and we will schedule in-person showings: that’s the fun part of becoming a homeowner! I’ll offer some advice on how to compare the various properties we visit. One day, one home really speaks to you; it meets your criteria, and you’re ready to place an offer. I’ll guide you on how to craft a smart offer to strengthen the likelihood of it being accepted. Yes, there will be paperwork. We share a “hurrah” and we are Under Contract (UC).
There are still some negotiations we will work through: a home inspection, a termite inspection, an appraisal, and the underwriting of your loan. This step may take a few weeks. Our goal is to get to the last step: Closing. Closing is when the actual transfer of funds and ownership occurs; a title company typically facilitates these legal steps. On closing day, you’ll sign a lot of loan paperwork, and you’ll also receive the keys to your new home. Congratulations: you are a homeowner!
Finally, if this home will be your first time to own a home and you meet certain income requirements, ask about the Tennessee Housing Development Agency (THDA) program. You may qualify for a lower interest rate or assistance with down payments.
Wilson Group Real Estate, 4100 Hillsboro Circle, Nashville, TN 37215. Office phone number is 615.436.3031. Sharon: TN License # 325136. Becky: TN License # 274742.