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Real Estate

Home Buying Process In Chattanooga, Tennessee

Are you looking for homes for sale in Chattanooga? It’s one of the beautiful cities to live in America. Located at the base of Lookout Mountain and along the Tennessee River, you will always enjoy life in this downtown city.

Owning your dream home is always a thrilling experience but it can also be complex especially if you are a first time home buyer. If you need a smooth homeownership journey and experience when buying your home in Chattanooga, you need to understand the home buying process and work with reliable real estate agents who will offer guidance in every step.

The home buying process consists of several steps that any prospective home buyer must go through so as to own their dream home. The following are the key steps a home buyer needs to follow in order to own a home in Chattanooga, Tennessee.

  1. Step 1; Obtain Your Credit Score Report If You Plan To Take Out A Mortgage

A credit score report is very essential and it plays a very significant role when it comes to qualifying for mortgages. Lenders will want to fast of all assess whether you are capable of repaying your loan. A good credit score should give you a green light to continue with your home buying process.

  1. Step 2; Depending On Your Salary, Calculate The Amount Of Mortgage That You Can Afford

To avoid foreclosure in the future, home buyers are always advised to go for homes for sale that are within their budget. Remember when you qualify for a mortgage, you will add another expense to your monthly income.

Therefore, it’s important to, first of all, ascertain the amount of loan that you can afford to take without putting a strain on your lifestyle. There are several online mortgage calculators that you can use to calculate an affordable monthly mortgage repayment amount based on your current income and other expenses.

Also as you do this, set aside a certain percentage of your cash that will be used for a down payment, attorney fees, home closing costs, and other initial expenses that you will incur in case you want to buy additional furniture and other furnishings.

  1. Step 3; Hire A Reliable Real Estate Agent

Although when buying a home is not mandatory to work with a real estate agent, they can make your home buying process much easier and fast. An agent has access to your local MLS and also is aware of the local market trends and pricing.

As a first time home buyer, working with an agent is worth the cost because they are free. The seller of the home pays for the commission costs. They can also help get the best lenders who will give you the necessary loan that you require for your Chattanooga dream home.

  1. Step 4; Begin Searching For Your Perfect Home

Now that you have acquired your credit score, know the amount of mortgage that you can afford, have found the suitable lender and you have a real estate agent to help you, it’s time now to list down the type of house that you are looking for. Also, consider the location as this one matters quite a bit in determining the property pricing.

Once you have identified the type of home that you are looking for, it’s time now to engage your agent to start home searching according to your specifications. Other things to consider include social amenities, security, and proximity to your working area.

  1. Step 5; Make An Offer Once You Get Your Desired Home

There are many sellers in Chattanooga with homes for sale either listed or For Sale By Owner FSBO. Once you have come across a good house that meets your specifications, it’s time now to make an offer. Your agent will help you in this and the seller’s agent will also make a counter-offer and you can negotiate until you agree on a certain price. You can then proceed and approach an escrow agent and deposit some deposit there as a sign of commitment.

  1. Step 6; Apply For A Suitable Mortgage

Once you have selected your preferred home, you can now approach your preferred lender for a mortgage. The lender will conduct a home appraisal and determine whether it’s worth to fund the home buying or not. If you qualify, you will be granted the mortgage.

  1. Step 6; Book For A Home Inspection

A home inspection is very important as it helps the home buyer check whether all the repairs are done according to the instructions given. An independent home inspection agent is the one who usually conducts a detailed home inspection and gives a report on the status of the home.

If there are any other repairs that you would like done, you can request the home seller to make the necessary repairs and this is inspected on the final-walk through before home closing is done.

  1. Step 7; Home Closing

Home closing is the final step in a home buying process. When everything is fine, both the home seller and home buyer agree to close the deal. They will then proceed to a real estate attorney and sign the transfer of ownership documents. An escrow agent should also be present so as to release the money to the home seller once the home buyer acknowledges the receipt of the legal title deed of the property to become the new homeowner.

If you are looking forward to buying your home in Chattanooga, Tennessee, talk to us today and we shall guide you in every step and make your homeownership journey smooth and exciting.

Author: Nicole Anthony, Charlotte Mabry Team, Keller Williams Realty, Greater Downtown Chattanooga. https://www.charlottemabryteam.com