Buying a home is not as easy as we think. It takes time, effort, and knowledge to successfully achieve all your plans. Every person or family wanted to have their own home, and this is one of the first huge investment most people make.
Homeownership is a huge investment therefore, it also needs huge preparation financially. This article will provide you steps and must-dos to help you manage everything properly and make the best decisions possible when it comes to buying a home.
Step 1: Have an early research.
Real estate listings can be found on the web, magazines, and newspapers. This would help you in knowing the housing trends areas.
You can also monitor the particular homes that interest you and check to see how long they stay on the market. Never forget to take note of the changes when you plan you ask for the price.
Step 2: Figure out what you can afford.
Before picking out your choices, you need to know your financial status first. Most lenders recommend the buyers to search for homes that don’t cost more than three to five times of their annual household income. This is especially if the buyer plans on making 20% of the down payment. Using the Affordability Calculator will help you see the amount of the house you can afford.
Step 3: Get pre-approved for credit for a mortgage
The first thing you need to do before looking and searching for the houses for sale is to know how much money you can spend. To do this, you need to be prequalified for your mortgage by providing your financial information such as the amount of savings, income, and investments to your mortgage banker. After you provide this information to your lender, they will tell you how much money they can lend you and show the price range of the houses you should be looking for. After reviewing all the information you have provided, only then your lender can verify the financial credit and status.
Step 4: Find the Right Real Estate Agent
One of the most important partners you should call for is the real estate agents. These agents have the knowledge of buying and selling properties, have the negotiation skills and they are familiar with the chosen area that you want. Their knowledge and opinion are what you need in achieving a successful homeownership. Most importantly, some neighborhoods are not open to the public, and the real estate agents have access to these places.
Step 5: Arrange a home inspection
Get help from your real estate agent to arrange a home inspection of your chosen home. Check out for signs of structural damage or things that need fixing. This will help to protect you from the chance to renegotiate your offer or withdraw it without penalty. This is in case the inspection reveals significant material damage.
Step 6: Close the Sale
After all the process stated above, you can now complete your home purchase. You can do this by signing all the documents required and the loan documents. Wait for a couple of days to get the fund from your loan. Once the check is delivered to the seller, you can now move to your new home!!