As a homebuyer or as an investor, or as anyone that has any sort of relation with the homebuying and selling process, it’s beyond important to have a thorough understanding of the process’s timeline and what that timeline consists of. Whether you are looking at single-family homes in the suburbs, or 20-story apartment buildings in the city, being able to navigate your way towards closing day without unnecessary roadblocks and unwanted surprises is the goal, and to achieve that goal, we have to develop a solid foundation of knowledge when it comes to the steps we need to take, and how long these steps will take. Let’s focus on 3 of the most important steps to support your buying process and how much time we can expect these steps will makeup.
Building Capital
Building up a sufficient amount of capital for your down payment is not only important, but a requirement in almost all cases of property acquisition. The time that saving for a down payment will consume is completely dependent on your personal financial situation and the tier of real estate you are looking to purchase, so we won’t discuss timing when it comes to building capital, but let’s not forget about this vital step in the process. As a rule of thumb, I like to have a minimum of 20% (based on property value) liquid and ready to fund down payment, but that isn’t to say there aren’t specific and unique situations where using more leverage makes sense. Analyze your deal and your strategy always, but you typically can’t go wrong by putting more money down and having a lower payment. To have those funds ready to go, I’d recommend having your down payment capital in an account which you won’t need to use for reasons other than funding that closing.
Finding the right Agent (1-10 days)
Another one of the first and most important steps to your homebuying process is finding the right real estate agent for you. You and your agent are going to spend a lot of time together throughout the process, so finding one which you trust and get along with is important.
Choosing an agent who is experienced and knowledgeable in the location of which you are looking to buy is crucial. As an agency, one of the first things we look for in a potential new agent is whether or not they have experience or at least an understanding of our Orlando / Central Florida market’s ins and outs. An agent who knows the area is going to have a lot more relevant insight about the neighborhoods and locations you are looking within, and you’ll avoid possible hiccups that may arise from a lack of familiarity with the area.
Having your Mortgage Pre-Approved (24 Hours)
Having your home loan pre-approved is a smart step to take during your home buying process. We still find ourselves in a very active and competitive market so having a pre-approved mortgage is a great way to present that you’re a serious buyer, to differentiate yourself from other potential buyers and even to help yourself score a better deal on the property. If you’ve never had a mortgage pre approved, don’t sweat, it’s a fairly simple and quick process. After you do your research and choose a lender that you’d like to work with, it’s not much more than a phone call! Be prepared to answer a few basic questions around your financial situation, such as how much you make and what your debt-to-income looks like. After they run a credit check to verify your qualification for such a loan, that’s it! Having your mortgage pre approved is such a beneficial asset to your home buying process, and being that its quick and easy, it’s a step we shouldn’t overlook.
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