Buying and moving into your new home may seem like an overwhelming process. However, it doesn’t have to be that way. There are indeed many steps you need to take to attain homeownership. But, if you’re organized and well-informed – and if you have the assistance of a company like CRN – the process can be manageable and even fun. We make it easy and simple for you: below are some tips that will guide you through the basic steps of buying a home. Pre-qualify Search Compare Make an Offer Pre-qualify As the process of bidding for and purchasing a home can be very

QUICK NOTES There are four basic steps to buying a home: Prequalify, search, compare and make an offer. With preapproval, you know how much you can borrow and it lets sellers know you are a serious buyer. Go through all the listings at CRN. Look at the prices of similar properties in the area being sold by Realtors. Visit the property to make sure it is what you want. Afterward, negotiate an offer at the lowest price possible.

competitive, every advantage you have can help you. One such advantage is to pre-qualify (or get a pre-approval) for a mortgage. With a pre-approval, a lender provides you with a letter that validates the amount of the loan that you are qualified to obtain. This letter gives you credibility and confirms to the seller that you are a serious buyer.

The amount listed in a pre-approval letter is a general guideline for the maximum loan you can obtain. You do not, however, have to borrow the maximum amount – you can borrow a smaller amount if that is all you need to purchase the home. Moreover, you do not have to use the lending institution that has granted you the pre-approval; you can get your loan from someone else if you prefer. Financing sources and the factors behind pre-qualification are discussed in detail later in this guide.

Search

There are several options for you to explore when searching for a home. With CRN’s listings, you may find great homes at great values, regardless of your budget. We have access to listings across a wide range of categories: Pre-foreclosures Auctions Foreclosures FSBO (For Sale By Owner) FSBR (For Sale By Realtor) Bankruptcies

Access to these markets gives you an inside look at homes you typically can’t find in the classifieds or though open houses. What’s more, these opportunities often feature homes at a bargain discount, so you’re getting an inside look at a home that may be priced below market value.

Compare

You can’t really tell if a home, or any product for that matter, is a bargain until you compare it to something similar. In real estate, similar homes are called “comparables.” When you are exploring properties, you should look into comparable homes that have sold in the same neighborhood and similar areas. Such comparison shopping will give you an idea of how the home you’re looking at stacks against others in a given time period. Also, if you look at comparables over a longer period of time, you can get a sense of how the area is increasing or decreasing in general value.

When looking at comparables, it’s best to compare square footage, number of bedrooms and baths, lot size, and the overall condition of the homes. For example, it is not helpful to compare a 1,500 square foot home in a modest neighborhood to an 8,000 square foot estate in a posh area of town.

Make an Offer

Once you’re pre-qualified, have found a home, and are comfortable with your comparables analysis, it’s time to put in an offer on the house. Now you must negotiate the lowest price possible, sign the sales contract, and close the deal.

The offer process, like the other steps towards homeownership, can be easy and straightforward if you’re organized and have the right assistance. In some way, it’s a little like buying a new car: if you accept the asking price, you will always wonder whether you could have received a better deal. But if you offer a price that’s too low, you could price yourself out of the sale. When you submit your offer, three things can happen: acceptance, rejection, or counter-offer.

After an acceptance, you have the right as the buyer to hire building inspectors to examine your new house. If they find any important problems, such as a leaky roof, faulty wiring, or termites, then you may rescind the offer. Usually, however, the buyer does not cancel the contract, but instead renegotiates a lower price for the house by deducting the cost of these anticipated repairs.

A counter-offer is a rejection accompanied by another offer. The seller refuses your offer but makes another offer in return. The counter-offer will be somewhere in between your offering price and the original asking price for the home. Treat the counter-offer like a new asking price. If you try another offer halfway between your first offer and the counter-offer, the seller might accept it.