Question

2 after you review your finances, what is the next step in buying a house?

signing the contract
finding an agent
determining what you need and want
shopping for a mortgage

Explanation:

Analyze the home buying sequence

In the Home Buying Process, the first step is to review your personal finances to understand your budget, savings, and credit score. Once you have a clear picture of your financial situation, the immediate next step is to shop for a mortgage (or get pre-approved) to determine exactly how much a lender is willing to lend you. This establishes your actual purchasing power before you begin looking at homes or hiring an agent.

Evaluate the given options

• Signing the contract: This occurs much later in the process, after finding a home and making an offer.
• Finding an agent: While important, you should know your budget and mortgage options first so you can work with an agent who specializes in your price range.
• Determining what you need and want: This is part of the preparation, but shopping for a mortgage is the critical financial step that follows reviewing your finances to establish your realistic price range.
• Shopping for a mortgage: This is the correct next step directly following a financial review, as it secures pre-approval and defines your home-buying budget.

Answer:

• Signing the contract
• Finding an agent
• Determining what you need and want
• Shopping for a mortgage (Correct answer)