Here’s what it takes to buy a home in the United States

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Here’s what it takes to buy a home in the United States
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If you are about to buy a home or have the intention of, at some point, acquiring a home, it is important to take into account that this process requires the completion of a series of important steps to make sure that it is successful.

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It is an important investment that can strengthen a person’s assets; However, there is information that is essential for buyers, find out about it here!

Step 1: Prepare your finances

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How much money do I have? How much can I pay monthly and in cash? For how long can I make these payments without affecting my economy? These are just some of the questions a person should ask themselves before buying a home.

Preparing finances is taking into account each and every one of the expenses involved in buying a home; from the agent’s payment, taxes, paperwork and necessary renovations.

Step 2: Prequalify for a loan

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One of the main steps will be to pre-qualify for a loan; At this stage of the process, sufficient information will be required for the financial institution to provide a loan that is tailored to the buyer’s financial situation.

Home loan options are wide and varied, but it is crucial to analyze what are the benefits and disadvantages associated with them, such as the interest rate and payment terms.

Step 3: Find the Ideal Home

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Each person has different housing needs that are based on the number of people who live in a house or the distance they need to travel to get to their workplace.

Finding the ideal home is a process that can be as short as it is lengthy, but it is undoubtedly a basic investment to ensure that the needs of its inhabitants are met.

Step 4: Submit an offer

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After selecting an ideal home, the potential buyer must present an economic offer, taking into account all the previous steps, in addition to consulting with an expert to make a suitable offer.

This will be based on the list price of the house, the competition in the market and the competition that exists between potential buyers, since finally the seller will accept the one that is closest to its initial figure.

Step 5: Apply for a home loan

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It is possible to access a mortgage loan, depending on the house to be bought, the income of the buyer and the interest rate that he is able to pay.

The mortgage loan takes into account issues such as the estimated interest rate, the approximate costs of closing the sale, the monthly mortgage payment and the possible penalties.

Step 6: Close the purchase of the house

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The Home Purchase Closing Disclosure is a five-page form that thoroughly spells out the terms of the home loan and home purchase.

It includes the estimated costs of taxes and insurance, possible penalties, as well as scheduled rate changes, which will aim to lay the foundations for the closing of the sale.

The documents you will need to buy a house in the United States

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1 Letter of prior approval

The pre-approval letter is a document granted by the lender, which will detail the amount of the mortgage pre-approved by the financial institution chosen by the buyer.

This step is taken long before you start looking for homes, since it will be through this document that sellers will have the certainty that the purchase is serious.

2 Home loan estimate

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This is another important form that, by law, must be sent by the lender within the first three business days in which the loan has been requested, detailing its conditions.

The loan estimate It is not only useful for the seller, but also for the buyer, since it will detail each step and each payment that must be made to comply with the financial institution.

3 Agreement for the sale of a house

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The purchase agreement is a legal document that is signed by the buyer and the seller. In it, both sign the commitment to formalize a purchase and start the contract.

In addition to the buyer and the seller, another subject that is involved is the real estate agent, who will be in charge of drafting the terms of the sale and including all the relevant information.

4 Home inspection report

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The home inspection report is essential to make an offer and estimate what the costs will be resulting from the damage found in the foundation, structure and rooms.

This report takes into account the roofs of a house, the operation of appliances, the fireplace, exteriors, bathroom accessories, structure and base of the house, among others.

5 Home appraisal

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A home appraisal is different from an inspection, as it will allow you to determine the current market value of the property and will help you receive a mortgage approval.

For this reason, it is the lender who has the responsibility of carrying out this process to approve the agreed loan; thus, it is vital that you have the certainty that the property’s value is in line with market prices.

6 Home ownership titles

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The purchase of a house represents the expenditure of a significant sum of money that will be paid little by little over, sometimes, several decades. Thus, it is necessary to ensure that the property in question is free from all encumbrances.

The search for property titles avoids going through scams, since it is possible to verify the legal right that corresponds to a seller on a house, which indicates that it will be able to sell it without any problem.

7 Homeowners insurance

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In addition to mortgage loans, the buyer must take into account the payment of home insurance in their budget, in order to guarantee that their investment is not in jeopardy at any time and for any reason.

Home insurance protects against the total or partial loss of a home, reducing the costs of repairing the structures and insured items that are inside the home.

8 Cashier’s check

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Without the house check, it will be impossible to complete the process of buying and selling a home. This must include the final amount of the purchase, including the costs of closing the process.

Why is a cashier’s check necessary? This is because it serves as a guarantee that the funds can be collected. If a personal check was used, a longer process would be required to verify that the buyer has sufficient funds.

9 Closing Disclosure

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The closing disclosure is an essential procedure to close a successful sale in which both parties obtain the maximum benefit. This is done through a five-page form prepared by the lender.

There, all the terms of the purchase are detailed and specific figures attributed to it are provided. With it, it will be possible to access a cashier’s check, and it must be provided at least 3 business days after the closing of the transaction.

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