Buying a New Home? SLFCU is With You Every Step of the Way
Are you daunted by the idea of buying a new home? SLFCU is here to help. Following are the major steps of finding and financing a home for most homebuyers, including SLFCU’s recommendations and resources to help make the process go smoothly.
FIRST, CONNECT WITH SLFCU
To get off to a great start, first-time homebuyers are encouraged to contact an SLFCU loan officer early on. Our friendly team can offer support throughout the process. They can help you determine how much you can afford, and estimate a timeline for the process. You can also obtain pre-approval for a home loan, which has two advantages: It helps determine what you can afford, and strengthens your purchase offer by indicating you already have secure financing from a trusted lender. Our team can also advise on maintaining or improving credit scores, and offer resources to help you find a real estate agent and the right home for you.
SAVE FOR HOME BUYING COSTS
As a buyer, you should save for three main expenses: the down payment, closing costs, and initial property tax and insurance costs. Our loan officers can help you estimate how much you may need to save.
REVIEW YOUR CREDIT REPORT
It is important to check for errors or inaccuracies on your credit report. You can request free copies of your credit report from the three major credit bureaus once each year at annualcreditreport.com. SLFCU loan officers can assist in reviewing your report and offer guidance on improving credit scores if needed.
SELECT A REAL ESTATE AGENT
Real estate agents play a crucial role in your homebuying journey because they can provide valuable insights on the market, properties, and neighborhoods. To find an agent, you can conduct research online or get recommendations from friends or family members.
MAKE AN OFFER AND FINALIZE THE CONTRACT
Once you’ve found a home, your real estate agent will assist in preparing an offer. Typically, “earnest money” is included as good-faith deposit – it demonstrates your commitment to purchasing the home. Negotiations may occur to determine the final purchase price and closing costs. Once the offer is accepted, the buyer is considered “under contract.”
HOME INSPECTION AND APPRAISAL
A licensed home inspector will assess the property’s condition and provide a comprehensive report. Based on the findings, your offer may need to be renegotiated. An appraisal is also conducted to assess the property’s market value. If the appraised value is lower than the agreed-upon purchase price, consider options such as renegotiating or increasing the down payment.
GET HOMEOWNERS INSURANCE
Homeowners insurance is typically a requirement when purchasing a home. It should be finalized promptly to avoid delays during the closing process. Get quotes from multiple insurance companies and select your best option.
FINALIZE ADDENDUMS AND FINAL WALKTHROUGH
Addendums are used to outline modifications to the purchase agreement. They typically include cost allocations, repairs, and/or adjustments to the closing date. A final property walkthrough will ensure that your requested repairs have been completed and unauthorized modifications were not made.
CLOSE YOUR LOAN AND MOVE INTO YOUR NEW HOME
“Closing your loan” means signing the final paperwork at the title company. The title company verifies ownership and addresses potential issues. Title insurance is required to protect against future legal claims. After the money has been distributed and documents recorded, you will receive the keys and can move into your new home.
ENJOY YOUR FIRST MEAL IN YOUR NEW HOME…ON US!
After you’ve financed your new home with SLFCU, we’ll give you a gift certificate for Dion’s pizza to help celebrate moving day.
By following these steps and using our resources, you can navigate the homebuying journey with confidence. We are with you every step of the way!
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