Buying a home for the first time can be an exciting but intimidating experience. With so many homes for sale, it’s essential to understand the homebuying process to find the perfect place for you and your family. In this post, we’ll cover everything you need to know to make an informed decision when looking for homes for sale in Clayton NC.
Guide for First-Time Buyers
One of the first steps for first-time homebuyers is getting pre-approved for a mortgage. Pre-approval is a process in which a lender reviews a potential borrower’s financial information, credit report, and employment history to determine how much they are qualified to borrow.
When meeting with a mortgage lender, it’s helpful to have the following documents:
- Pay stubs from the last two months
- Proof of other sources of income, i.e., investments, alimony, disability, etc.
- Bank statements from the past few months
- Information about current debt obligations, i.e., car loans, credit card balances, student loans, etc.
- W2 forms from the last two years
In addition, you will need to provide information about your employment history and assets, plus contact information for your employer and financial institutions.
Making an Offer on a Home
When you’ve found a home that meets your wants and needs, it’s time to make an offer. Again, you need to research and have a realistic idea of what you can afford and the market value of a particular home. A real estate agent can help you with this process and provide tips for negotiating the best deal possible.
Read through the sales offer carefully and ensure everything promised is in writing (i.e., repairs to be completed, appliances conveying, etc.). A comprehensive written offer will help ensure that the sale goes smoothly and you get everything expected.
After your offer is accepted, you will be asked to sign a purchase contract or sale agreement. Make sure that you read through this document carefully before signing it. It is legally binding once you have both signed it, so make sure you understand your obligations.
Closing on a Home
Many states require a lawyer to oversee real estate transactions. So, you’ll be directed to their office for your closing. Sellers may or may not be present. At closing, you will review and sign all the legal documents related to the purchase, including a deed of trust, loan documents, and a HUD-1 settlement statement. The HUD-1 statement lists all of the costs associated with the purchase. So, again, read everything before signing. Ask questions if there is something you need help understanding.
Homeowner’s insurance is required to be in place before closing. Most lenders require that you provide proof that you have purchased a policy and paid the first full year of premiums.
Closing day can be an exciting and overwhelming experience. Your real estate agent and the lender will be there to answer any questions you may have and to make sure everything goes smoothly. Once all the documents are signed and the monies paid, the keys to your new home will be yours. Congratulations!
Are you a first-time buyer in search of your dream home? HomeTowne Realty can help. Our experienced realtors will help you find the perfect home for your needs and budget and guide you through the entire process. Contact a HomeTowne Realty office today and see what we can do for you.