The idea of owning a home is in itself a dream come true for many. However, it involves various legal documents, and you don’t want to make mistakes. Whether buying a display home, an apartment, or a condo, these are expensive purchases, hence the need to understand all the legal requirements.
Here are simple legal steps to follow when buying a home:
1. Mortgage pre-approval
Most buyers view Horsham display homes by JG King, without mortgage pre-approval, but it’s critical. You need it to assure the seller that you have been approved for the required financing. And this makes it easier for them to accept your offer.
The lender requires your personal information and proof of income and credit report. They will then issue a document stating the pre-approval period and amount. However, this doesn’t’ guarantee a loan but is proof that you qualify for one.
2. Putting up an offer
A purchase order is an offer to buy your chosen home. Locate the property of choice, and put in a purchase order. Think of how much you wish to offer and can still offer less than the seller’s asking price. A purchase order is a critical document, and you might need the services of a lawyer. Besides, you want to ensure that the document includes all the necessary clauses to guard you in the purchase process.
3. Signing the purchase agreement.
Once you submit an offer, the seller may accept, counter or reject it. If the seller changes some of the conditions, your attorney or agent should review the changes. If the seller takes the offer, you both sign the agreement, which defines things like;
- Earnest money
- Contingencies
- Settlement date
- Date of possession
4. Mortgage approval
If the seller accepts the offer, contact the lender to commence the mortgage approval process. The lender will, however, need more documents and information. For first-timers, getting approval can be stressful to avoid disappointments, establish rapport with the mortgage lender, and return all paperwork in time.
5. Plan for home inspection
Almost all home-sale contracts include a provision for a home inspection for the contract to be binding. Review the contract to ascertain whether the clause exists. If not, your agent or attorney can include the clause in the agreement contract. This then allows you to engage a home inspector to examine the home for any issues. If the professional unearths any problems, the seller may make the necessary repairs or negotiate the price downwards.
6. Deed issuance& Filing
A deed is legal proof of ownership, and you’ll get it while closing the deal. It should include details of the property, including property lines. If you’re married or buying for another person, consult your lawyer on the process of ownership. To complete the purchase, have the documents filed with the county.
The bottom line
Buying a home involves various processes and legal aspects. Hire an attorney to guide you on the necessary documents. This way, you save a lot of time and avoid costly mistakes in the process.
