5 Steps on How To Buy A House
Updated: Jul 27
Massey Real Estate Corp
1. Mortgage Pre-Approval:
Before you even think about buying a house, you need to get mortgage approval. Most times, you can use your approval as proof that you are, in fact, a qualified buyer. This is a very crucial step to purchase a house, what type of down payment you need to budget for, monthly mortgage payment, and what type of loan program you will use to finance the new property.
2. Price Discoveries:
Once you are settled with your mortgage approval, it’s the fun part! Start browsing for houses that match your wants and needs. This can be done in many ways; online browsing, working with a realtor, or simply going to open houses for houses that are on sale. When you are in the process of looking through possible homes you’d like to purchase, keep in mind the price negotiation tactic. Buying a house that is within your maximum budget is not always necessary. You need to think about the aftermath of buying the house; will you be able to have fun or will you pay for bills that come with the house? This is where price discovery comes in. Price discovery is the steps you go through to determine the most you are willing to pay for a home. This involves a lot of research on your part, and the more the better.
3. Making your Offer of Purchase:
This next step is a little patient-heavy. Once you’ve settled your price and committed to a house, it’s time to make your offer of purchase. Let’s assume that you’ve already received a mortgage pre-approval and have a great understanding of the type of property you are qualified to purchase, your agent will submit your purchase offer to a listing agent or seller. If you receive the accepted offer, you get introduced to a series of timelines for final mortgage approval, appraisal, inspections and other requirements which would be stated in the terms of the contract.
4. Mortgage Approval Process:
Let’s backtrack to understanding the process of getting the mortgage approval. The only difference between the preapproval and the approval is that now there is a specific property that you need a mortgage approval for. The first step is to make sure you have sent your mortgage agent a copy of the Purchase Agreement (signed and completed) correctly, and the property information sheet like the MLS feature sheet.
5. Closing – Getting your keys!
The last step to buying your house is, well, officially buying it. The closing day is the day you go through the legal processes of the property and the keys. Once that is done, you’ve got the house! However, you will be needing to meet with your lawyer to sign the necessary final papers, including the actual mortgage contract, and provide the balance of your down payment funds. When it comes down to your closing day, your lawyer will combine your down payment with your initial deposit, request the mortgage funds from your bank, then pay the seller in exchange for the keys and land title to the property. But that’s it! Once a transaction has closed successfully, you are the proud owner of your new home!