Your second step would be to become prequalified for a purchase. This can be as simple as a bank letter stating you have the funds, or a prequalification letter for a future loan. Usually you will have to sit down with a bank or mortgage company.
| Below is a simple calculator to give you an idea of how much house your may be qualified for. | |
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This calculator is for informational services only. I do not formally recommend "Calculators 4 Mortgages" as an avenue to secure a loan, but they do make a nice calculator :)
Gross Monthly Income (Before Deductions or Taxes) Term (Length of Loan in Years) % Annual Interest Rate: (See rates to the right) %Local Property Tax Rate:(Try 1% to start) |
To continue your second step you would usually have to sit down with a bank or mortgage company to explore your prequalification. Must home sellers will not consider an offer without this step being done.
Your third step is to pursue the home purchase. It is HIGHLY RECOMMENDED that you utilize a real estate agent to represent you. They can provide you with a lot of information that can equip you. For instance, is the seller's asking price just a starting point for the negotiations or are they a motivated seller and the asking price is slightly below market value? What kind of inspections are required? What can you expect at closing? What is closing?
Most Realtors will request a buyers representation contract, some may not. But all are required by law to provide you a Customer Information Pamphlet of Agency Disclosure. This form is required for us to keep as evidence that we fulfilled our duties to you about explaining what the law says about agency (the act of representing you).
Realtors are also required to disclose to you whether they intend to represent both the buyer and the seller in the same transaction. Representing both is known as Dual Agency. We must receive your consent via your signature on this Dual Agency form before we can act in this way.
Your fourth step would come after your offer is accepted. If you are utilizing a mortgage company for financing, your financial institution will require the property be inspected to appraise the value of the property.
Besides any of the minor things that may arise we a ready for the final step of the closing. This usually takes place at the title agency, but can be located elsewhere. Typically as the buyer you will need to bring your check book for things outside of your financing for such things as your share of the upcoming taxes, title insurance and any other part of the closing costs that may have been negotiated. Usually the buyer's Realtor fee or commission will be handled by the sellers Broker.
If I can help you in any way I would love to offer my services.
Gary
