are taken out), you can often be approved for more than you are comfortable borrowing. During the pre-approval, your lender will also be able to advise you on how much cash you’ll need for your down payment and closing costs. They will also be able to direct you toward the various down payment assistance programs available for first-time buyers. As a first-time buyer in South Dakota, you may be eligible for a reduced interest rate loan and cash assistance for your closing fees. To learn more about the qualifications involved and to find a listing of lenders across South Dakota who participate in the South Dakota First-time Home Buyer Program, visit www.sdhda.org. Step 5: Find a Reputable Realtor: Once you’ve been approved, it’s time to start shopping for a home. Using a realtor is the most efficient way to look for a home. A good realtor can make the home-buying process less time consuming and provide a valuable range of services, including: researching the list of homes for sale in your price range and showing you homes that meet your needs, providing you with information about the community, schools, real estate taxes and prices of recently sold homes in the neighborhood, assisting you in writing your offer to purchase and presenting it to the seller, negotiating the details of the sale and assisting you with arrangement for your closing. Because you’ll be spending a lot of time with this person, it’s best to find a realtor by asking friends, family or even your lender if they can give you a good referral. Step 6: Get a Home Inspection: When buying a home, it’s important to look past the decorations and furniture to the house itself so you prevent yourself from moving into a money pit. One of the best actions you can take to protect yourself is to get a home inspection. An inspector will go through the home with you and identify any current problems, potential problems and future maintenance issues that you will need to consider and provide you with a full written report of the condition of the home. The inspector has no emotional or financial interest in the home and can give you an unbiased evaluation of the home, its condition, what problems you may need to deal with and the approximate
costs for needed repairs. Once the inspection is complete, your realtor will help you negotiate any issues you would like the seller to assist with prior to the offer being finalized. Step 7: Close the Loan and Set Up a Savings Account: Closing day is the date you review all your final documents, sign them and pay any money you still owe. Once you sign all the paperwork, you will receive the keys to the house and you will be the official homeowner! It’s then time to start moving in and to celebrate your wonderful accomplishment. The most important thing you can do when you are a homeowner is to set up a savings account. You may not be able to furnish and decorate every room in your house right away. You may need to prioritize and get your savings account built up before fixing up your house. As a homeowner, it is your responsibility for maintaining your home. To prevent yourself from future financial problems, you must have a savings account set aside and money going into it each month. Owning your own home can be a wonderful thing! It brings a sense of pride like none other plus it can be a great financial investment. When you surround yourself with the right people and take these steps to properly prepare yourself, you will feel more comfortable and the process becomes enjoyable. Are you ready to open the door to your first home? Home ownership is an attainable goal for most people so make your move today! The Sioux Empire Housing Partnership is a nonprofit organization that provides free home buyer education and counseling programs to make your first home buying experience a great one. Knowing what to expect, what questions to ask and what costs are involved will make the process less stressful and will make you a more successful homeowner. We encourage you to take advantage of the free education opportunities by visiting our website at www.siouxempirehousing.org or calling (605) 339-0942. ❤
- Sioux Empire Housing Partnership Sioux Falls, SD 163