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You’ve decided to embark upon one of the greatest adventures of your life. Buying a house is an exciting time that can be a bit overwhelming if you don’t have all the information you need. Making preparations ahead of time will save you time, money, and stress as you move through the home buying process. Before you begin searching the MLS listings, check out these 6 steps to buying a house.

Credit ScoreStep 1 – Credit is Important 

To secure a home mortgage loan you’ll need to be considered credit worthy by the lender. They will check your credit score and look over your credit history to make that decision. Before you begin looking for a house, you should order your credit report from the top three reporting agencies: Equifax, Trans Union, and Experian. Thanks to the Fair Credit Reporting Act you can receive a free report annually. Look over the reports for errors and delinquent accounts. Take action immediately on both.

Step 2 – Save Enough Money

It’s a rare person who can pay for their house with cash. For more people, it’s common practice to secure a home mortgage loan and pay a down payment. You can expect your down payment to be around 20 percent of the selling price of the house. Don’t forget to save money for closing costs and other necessary fees. Closing costs are approximately 2-5 percent of the selling price. The down payment and closing costs come out of your pocket, so prepare ahead and don’t be caught short.

Step 3 – Find a Real Estate Agent

You’re going to want to support and advice of a professional real estate agent throughout the home buying process. Find a qualified real estate agent that fits well with your needs. You will be working closely with this person and their team. Ask questions about their communication process, their use of technology, and their track record with other buyers. Look for someone who listens to your needs but is honest when it comes to expectations.

Step 4 – Mortgage Pre-Approval is Wise

Don’t waste your time looking at houses outside of your price range. Apply for a home mortgage loan pre-approval. Once approved, you’ll have a solid idea of how much home you can afford. The pre-approval can be beneficial when you come up against other buyers who are placing offers on your dream house. If a seller is trying to choose and you have a pre-approval, it shows that you are serious, and you may get the upper hand.

Step 5 – Place an Offer

Buyer OfferOnce you’ve found the home that meets your needs, it’s time to put an offer on the table. Your real estate agent will be a great help during this part of the process. Trust their advice and come up with an offer that catches the attention of the seller. In the event of multiple offers coming in to the seller, be prepared to go through a negotiation period. Your real estate agent will represent your interests. Trust them to work hard on your behalf. They are skilled at negotiations.

Step 6 – Closing Time

Once your offer is accepted, there will be a period of time that is filled with inspections, an appraisal, and other tasks that must be completed prior to closing. Closing day is when you’ll pay any fees associated with your transaction and sign all paperwork. This is a day to celebrate! You’ll walk away with the keys to your new home.

Don’t let the home buying process intimidate you. Your real estate agent is the best source of information when it comes to the real estate market trends and community details. Contact Brad Gilboe today (1-818-632-2296) to discuss your wish list and tour available homes for sale in the Los Angeles area.

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