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Steps In Buying And Selling A Home And How To Close On Time

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Steps In Buying And Selling A Home And How To Close On Time

This ARTICLE On Steps In Buying And Selling A Home And How To Close On Time Was PUBLISHED On August 8th, 2019

What are the Steps In Buying And Selling A Home And How To Close On Time

Many renters who have been on the sidelines are beginning to pull the trigger in buying their first home.

  • With home values appreciating to record levels and mortgage rates at a 3-year low, many first time home buyers feel if they do not buy a home now, they will miss the chance in becoming a homeowner
  • Many homeowners who lost their homes during the 2008 Great Recession and Housing Collapse are also joining in the bandwagon in the housing market
  • With new loan programs such as Non-QM Loans and bank statement loans for self-employed borrowers, homebuyers who had trouble qualifying for a traditional mortgage can now qualify

In this article, we will cover and discuss the Steps In Buying And Selling A Home And How To Close On Time.

The Decision To Become A Homeowner

what are teh The Decision To Become A Homeowner

The benefits of being a homeowner surpass being a renter.

  • Many renters are tired of paying rent and making their landlord’s rich
  • There is no equity earned with paying rent
  • Many renters who have been paying rent for years now regret that home prices have appreciated and they need to start from scratch
  • The good news it is not late
  • There are many first time home buyers questions
  • Many may be nervous in taking such a huge step
  • Many are confused with the Steps In Buying And Selling A Home
  • You are not alone
  • Many first time home buyers are nervous about spending a lot of money and pulling the trigger with one of the most important decisions they need to make in their lives

Learning about the Steps In Buying And Selling A Home And How To Close On Time is a great start in the home buying and selling process.

Getting Qualified And Pre-Approved By A Lender
how Getting Qualified And Pre-Approved By A Lender

The qualification and pre-approval process is the most important stage of the home buying process.

  • The home buying and mortgage process should not be stressful
  • The number one reason for last-minute mortgage denials and/or stress during the mortgage process is because borrowers were not properly qualified
  • Choosing the right lender is very important
  • Not all lenders can handle every type of home loans
  • Any loan officer can qualify a borrower with perfect 800 credit scores, low debt to income ratios, and no derogatory credit tradelines
  • However, that is not often the case
  • Borrowers may get denied for a mortgage by one lender but get approved with another lender
  • Over 75% of our borrowers at Gustan Cho Associates are folks who either got a last-minute mortgage denial and/or are stressing over their mortgage process with a current lender
  • Make sure you interview several lenders and see that the lender can handle the type of borrower you are

Gustan Cho Associates is nationally known for its no lender overlay policy on government and conventional loans. We are also experts on Non-QM Loans and bank statement loans for self-employed borrowers.

The Type Of Home That Is Right For You And Your Family

What are the The Type Of Home That Is Right For You And Your Family

Is homeownership right for you?

  • How much house can you afford versus qualify?
  • Does your job require a lot of travel?
  • These are some basic questions you need to ask
  • Renters are not committed to more than one year at a time on their leases
  • If you have a job that requires travel and/or potential relocation in the near future, homeownership may not be for you
  • However, if you are planning on staying in one area for at least three to five years, buying a home may be a good idea
  • Are you married or single?
  • If you are single and meet a significant other, think about the potential financial consequences
  • Are you going to live in your home?
  • Or will your significant other want you to live in their home? 

Consider the potential consequences before pulling the trigger.

Steps In Buying And Selling A Home And Hiring A Realtor 

what are the Steps In Buying And Selling A Home And Hiring A Realtor 

One of the most important Steps In Buying And Selling A Home is hiring a realtor you can get along with:

  • Interview several real estate agents
  • Research their online reviews
  • Both homebuyers and sellers need to get along with their realtor
  • Buying a home is not as easy as it often looks
  • Remember that a home will most likely be your life’s single largest investment
  • Experience is a must
  • Professional realtors know their areas and markets
  • They often know of homes that are available prior to the home hits online and/or the marketplace

According to Massimo Ressa, the Chief Executive Officer of Gustan Cho Associates, he says the following:

Do not call the listing agent in hopes that agent will do whatever it takes to earn twice the commission under dual agency. Agents are more ethical than the public gives them credit for. On top of which, you won’t get individual representation; you would either receive neutral representation or no representation at all. Ask friends for a recommendation to a Realtor. Search for agents in your area on a search engine, look at agent websites, read reviews, and peruse blogs (as many agents write about their real estate market). Try to find a buyer’s agent. A buyer’s agent will represent only you and have a fiduciary responsibility to look out for your best interests. You might be better served by an agent whose sole practice is buyer representation. There are buyer specialists in the industry. You do not have to work with an agent who also works with sellers unless you want to.

Real estate agents are professionals who represent their homebuyers and sellers. You should hire an experienced full-time real estate agent who you can contact anytime you have any questions and they return your calls and/or emails promptly.

How Much Home Can You Afford Versus Qualify

How Much Home Can You Afford Versus Qualify

One of the most important steps for homebuyers is getting qualified for a mortgage. Differentiate between how much you can afford versus how much you qualify. Lenders will only tell you the maximum you qualify for. Lenders do not take into account the following:

  • Monthly debts that do not report on credit bureaus
  • Medical, auto, life, health, and other insurance
  • Utilities
  • Maintenance and repairs
  • Vacation budgets
  • Childcare and elderly expenses
  • Education
  • Other personal expenses

You do not want to own too much home where you will be poor in other areas. Make sure that you are able to maintain your lifestyle after paying your mortgage.

Shopping For A Home And Entering Into A Real Estate Purchase Contract

Shopping For A Home

Once you are armed with an iron-clad solid pre-approval letter, you can start shopping for a home with your realtor. Once you find the perfect home and enter into a real estate purchase contract, the mortgage process begins. The timeframe to close on home loans is normally 30 days. Gustan Cho Associates has a national reputation of being able to close home loans in two to three weeks for borrowers who are changing lenders during the mortgage process. For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com.

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