Understanding Mortgage Paperwork

Posted on: 28 December 2016

When you are in the market for a new home, you can search for properties and get a pretty good idea what is out there. You need to determine a few things before you get serious so take some time and think about what you want, need, and can live without. Once you have those answers you can start to look seriously at properties that meet those needs.

Know What You Can Afford

Before you dive in too deep, you may want to talk to your bank or a mortgage company and get a pre-approval for financing. This will give you a solid idea of what you can afford and what the bank will be willing to loan. Without this information, you could spend a lot of time looking at properties that you can't afford or get financing for. The pre-approval process is not hard and it will give you a clear picture of where you stand.

Determine Where You Want To Buy

If you have an idea of the area you want to live in, start looking at homes for sale there to see what is available in your price range. Take a look at schools, parks, and the location of shopping or other important amenities in the area as part of your search. You may want to research crime statistics as well because by law a real estate agent can't tell you if a neighborhood is good or bad. They can only give you facts related directly to the area.

Finding a Real Estate Agent

Now that you have some idea of the area you want to buy in and the amount of money you can borrow, it is time to seek the help of a real estate agent and to start looking at homes. You could call any real estate agent in the area, but you may want to ask friends or family members that have recently worked with a real estate agent for recommendations first. You may have a better experience and if they know you are friends or family to a former client, they will likely work harder for you. You don't have to use any agent you don't like. Find someone you can work with and enjoy the process.

Working Through The Process

Once you have a real estate agent, a pre-approval, and a house picked out, your agent will help you make an offer, sign the contract, and walk you through the closing process. They are specialists at this, so work with them and trust that they know what needs to happen and what the timing of it needs to be. Remember to send along a card and maybe a small gift for their help after you settle into your new home and if you loved them, refer them to your friends.