For many people, owning a home is the quintessential American dream. If you’re ready to make the jump from renting a house or apartment to owning your own home, there are several hoops to jump through along the way. Some of them may be obvious, but others may come as a surprise. Here are the three major stages of the home buying process.
An Extensive Credit Check
Let’s assume you’ve secured a realtor to work on your behalf and researched mortgage loan rates Hoboken NJ. You’ve determined how much you’re willing to offer, and what your down payment will be. This is all well and good, but for a bank to assume the risk of your mortgage loan, you need to expect them to take a deep dive into your finances, debts, and collateral. This doesn’t have to be adversarial or unpleasant, but you do need to be ready to accurately catalog your income and expenses.
A Home Inspection
Home inspections are equally important for buyers and sellers. This is where structural issues like leaking roofs or foundations can be identified. Expect to spend $500 to $1000 out-of-pocket to hire a certified home inspector who knows what to look for. They will advise you on everything from woodwork repairs to Radon mitigation, and you can amend your offer to offset some of these costs if necessary.
Buying a home involves a massive amount of paperwork between you, the seller’s realtor, and the bank overseeing the transaction. There are often dedicated closing companies that handle the finer points for a fee. It may be in your best interest to build those costs into your offer. Either way, a trustworthy and licensed realtor should be able to explain what you’re signing and advise you of anything out of the ordinary. After all, they do this every day!