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The Different Phases Of Home Buying

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Eyeing your first home?

Home buying can be a complicated process, much like everything else. A prospective home buyer would usually go through different phases of home buying before finally getting a close.


It is when you suddenly realize you do not want to be an apartment dweller all your life, hate paying off someone else’s mortgage and you start contemplating about buying a new home.


Once you realize the need, you now want to look for information to help you decide.  You will seek more details about location, prices, amenities and features. You will begin looking for a reputable realtor to discuss this need and help you find properties that will fit into your budget, lifestyle and preferences.


By this time, you are ready to scout the market. Equipped with all the information you need, you may start visiting open houses or ask your real estate agent to schedule you a tour on properties available in the market. This will allow you to check each homes in terms of location, lay-out, number of rooms, etc.


You’ve found your ideal home and you’re ready to act on it. Next step is financing. There will be hundreds of mortgage lenders eager and ready to accept your loan application. But just because a lender accepts your application doesn’t mean it’s the right deal for you. It is very crucial therefore to do your research and read the fine print.  Check what each of these lenders offer like ease and convenience, dedicated mortgage officers, competitive interest rates and other elements that will suit your needs.


The second equally important decision to be made is to know your home loan options. You may choose to avail of the different home loan programs offered by government or choose to work with your mortgage broker. Discuss with your realtor and lender the terms and conditions of the loan and compare each in terms of  affordability, interest rates and monthly amortization.


After you’ve found your property, you can formally apply for a mortgage. The mortgage application will ask you questions about the property and your financial situation such as the address of the home you intend to buy, type, size, sale price, property taxes, etc. Be as honest and accurate with your application as possible, especially with financial issues to avoid delays.


Now you get to sit back and wait for the approval. Once you have completed all the necessary paperwork,  you may be able to get a feedback within 72 hours. Often, your lender will ask for more documents to support your income claims before it can grant you final approval.


The next step is to make the down payment. This is the money that you put up front when you purchase a property. For home purchases, 20 percent is a significant number. Paying at least 20 percent allows you to avoid paying for PMI, which protects your lender if you default on the loan. If you are looking for a lower down payment, an FHA loan only requires a 3.5 percent down but you have to pay for insurance and you will need to evaluate whether or not you’re in a good position to buy if you’re short on funds.

Again, finding your dream home need not be such a stress and an agonizing experience. All it takes is careful, thorough research, good planning, financial discipline, and a dependable partner like Synergy Real Estate to see you through.

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About The Author
Sanjeev Advani

• Hundreds of Investment Real Estate transactions successfully closed • 350+ Units currently under Property Management • 3+ Years of Construction Management Experience • Certified Property Manager, CCIM (In Progress) • Bachelors in Finance • Bakersfield, CA Native Deep Dive: I have been licensed in real estate for almost 10 years, and I have been specializing in investment and commercial real estate for the past 6 years. Through the years I have worked with Real Estate Developers, Investors, Average Joes, and many more. I am a Bakersfield native, and my educational background is in Finance. I have just completed the CPM (Certified Property Manager) certification which is one of the most prestigious designations in the Property Management Industry, with less than 1800 members world wide. I am also the President of the Board for Habitat for Humanity Golden Empire, the Vice President of the Board for Income Property Association of Kern County (IPAK), and Vice Chair of the Commercial Investment committee at the Board of Realtors. I look forward to working with you towards your real estate investment goals. Sunny Advani California Agent Lic# 01869863 | California Broker Lic# 02012941 Email: Sunny@RE-Synergy.com | Phone: +1 661 235 5726