If you are interested in buying a home in Maryland, we have some great tips to get started and get you ready for the adventure!
Contact a lender, and get pre-approved for a home loan
One of the most important steps in the home buying process is to be pre-approved. A lender will evaluate your income, debts, length of employment as well as savings and credit history before deciding whether or not you are eligible for a pre-approval loan. You can get “pre-qualified” by taking into account your assets while still getting essentially the same information.
Most lenders require that you make at least a 20 percent down payment for any mortgage, however, some say 10% if the property value is over $500,000. While there’s nothing wrong with putting less money down upfront, it’s best to plan ahead for what could happen later on if interest rates rise significantly or housing prices drop—making it tougher to
Gather your financial documents to be ready when you find the right property
The financial documents you’ll need to gather will be different from lender to lender, but most require:
● Personal tax returns from the last two years (1040 with a W-2) and your spouse’s if he/she is applying on an individual basis. Your tax return must show a minimum income of $75,000 for individuals or $100,000 for couples.
● Pay stubs covering at least two months of your average monthly income. If self-employed, that means bank statements proving your deposit history and latest bank account balances along with copies of recent 1099 forms
● A list of current assets including cars and savings accounts (show balance amounts in total).
Your real estate agent can help you with any additional questions on what needs to be provided.
Find the perfect real estate agent who will help you through the process
You’ll want a real estate agent who has experience in the area you are looking as well as the state and is familiar with property listings. Also, look for an agent that can work around your schedule and doesn’t mind taking calls at late hours of the night.
The National Association of Realtors provides a realtor search engine to match you with one in your area or county. However, be sure to ask for referrals from friends, family, and co-workers when choosing the right agent.
This is why it’s so important to communicate with your loved ones before making any big decisions in order to gauge how they feel. The last thing you want is for your home buying process to cause your loved ones more stress because someone didn’t approve of your real estate dreams!
Get excited! You’re one step closer to finding your dream home!
After finding your home, there are a few things that need to be taken care of before you can move in. The most important is signing the final paperwork to “closing” or completing the sale. The title company will then process all of your paperwork and provide guidance on when you’ll receive loan proceeds after closing.
In addition, make sure to get an insurance estimate for home coverage (make sure it’s enough). Lastly, if you’re not doing completion work yourself, hire someone that can help with inspections such as flooring and electrical problems. Your lender will require one or both of these items in order to close on the property so plan ahead accordingly!
Get excited about your new home!
This is a major step in your life and the best thing you can do for yourself right now is take some time to reflect on all that’s happened so far.
Hiring someone to inspect your new property will give you peace of mind. If anything comes up during the inspection, there’s still time before closing on your property date (normally 30 days) to fix it!
Buying a new home will take determination and persistence since there are many steps involved from pre-approval and finding the perfect agent near you until actual moving day. As long as you have patience and follow through with each task along the way, buying a home should be fun — not stressful!