Home Buying Guide with Kyle Davis & Team

From credit report checks and budget setting to selecting lenders and submitting offers, right up to settling into your new home, this comprehensive guide ensures an easier, more informed home-buying journey.

Step 1: Hire your local real estate expert

Real estate agents are compensated by the seller, meaning that the valuable expertise and resources they offer come at no cost to buyers. This unique aspect of the real estate industry allows us to commit wholeheartedly to the buyer's needs, empowering them with the necessary tools and knowledge to make confident and well-informed decisions on their home purchase journey.
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Step 2: Review Your Credit Report & Score

Before venturing into any loan or mortgage application, always review your credit. As per the law, you're eligible to get one free copy of your credit report annually at Annualcreditreport.com. Scores usually range from 300 to 850, with higher scores indicating a better loan eligibility. Be sure to dispute any errors you may find on your report, as this could potentially enhance your credit score. You can also check your credit score for free at www.creditkarma.com.
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Step 3: Determine Your Budget

Start by using online mortgage calculators to gauge the amount you can comfortably afford. Don't forget to account for the down payment, closing costs, fees (such as attorney, appraisal, and inspection fees), and any costs associated with remodeling or furniture. Note that the traditional 20 percent down payment isn't always mandatory; there are loans with minimal to zero down payment. An experienced home loan expert can help you navigate through your loan options, closing costs, and additional fees.
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Step 4: Choose the Right Lender

Shopping around is key when finding the right mortgage lender. Seek recommendations from friends and family and verify credentials with the Better Business Bureau. Engage with multiple mortgage lenders, ask relevant questions, and ensure their answers satisfy you. Opt for a lender that puts you at ease.
Real estate agent or realtor signing mortgage agreement for new

Step 5: Hunt for the Perfect Home

Make a list of your home essentials. Consider the number of bedrooms and bathrooms, the desired space, kitchen size, closet and cabinet space, and whether you need a spacious yard. Also, think about the neighborhood, nearby schools, commuting distance to and from work, local shopping convenience, safety concerns, and the rate of home appreciation in the area.
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Step 6: Submit an Offer on the Home

Once you find your desired home, it's time to submit an offer. Your real estate agent can provide a list of prices for comparable homes to help guide your offer. Keep in mind that negotiation is a back-and-forth process until a meeting point is reached. After agreeing on a price, you'll make an earnest money deposit, which goes into escrow as a sign of good faith.
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Step 7: Choose the Appropriate Mortgage for Your Needs

Several mortgage programs are available, but first-time homebuyers should familiarize themselves with the three basic types: adjustable rate, fixed rate, and interest-only.

Adjustable rate mortgages (ARMs) have a fixed interest rate for a short period, typically one to seven years, after which the interest rate can fluctuate annually. These are suitable for people not planning to stay in their home for an extended period or those seeking a lower interest rate and payment.

Fixed-rate mortgages provide a fixed interest rate, and consequently, a fixed monthly payment for a more extended period, usually 15, 20, 25, or 30 years. They are suitable for people who prefer predictable payments and plan on staying in their home for a long time.

Both fixed and adjustable rate mortgages can have an interest-only payment option. This allows you to cover the interest portion of your payment for a specific period during the loan term. This can increase cash flow and build equity through home appreciation.

Your mortgage lender or banker can help you understand which mortgage suits your circumstances.

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Step 8: Finalize the Purchase

Always arrange for a home inspection before finalizing the purchase to ensure the property's structural integrity and condition. The closing date should be mutually convenient.

Speak to your mortgage banker to understand all the costs involved with the closing to avoid any surprises. These costs typically include your down payment, title fees, appraisal fees, attorney fees, inspection fees, and possibly points you may have purchased to lower your interest rate.

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Step 9: Move Into Your New Home!

With your mortgage sorted and the deal closed, it's time to move in! Whether you hire movers or enlist the help of friends depends on your financial situation and the volume of items to be moved. But with that, you're done with the home-buying process! Just start unpacking and relishing your new home! The process doesn't have to be challenging if you're well-prepared and know the steps. Partnering with an experienced home loan lender and a knowledgeable, friendly real estate agent like Kyle Davis can ensure a seamless home-buying experience.
Family moving in new house