Do you remember that dream house you had when you were a kid? How close are you to achieving that now? As it turns out, you might be closer to that than you think. Buying a house nowadays is possible with all the loans and other ways to earn a steady income. You need to get a few things right, and that dream house could be yours.
That being said, we want to make sure that you don’t make the wrong decision. There’s a process to buying a house, and that’s what this article is for. Allow us to introduce you to the various steps you need to take when purchasing a home.
What to Remember
The home-buying process can be pretty challenging, but we can guarantee that it’ll be successful if you know what you’re doing. Before you purchase that property, be sure to read the following steps to avoid delays and setbacks.
Organize Your Personal Finances
The first thing you need to do is determine how much you can afford by organizing your personal finances. Knowing how much your monthly expenses are and choosing how much you have in your bank is essential. This will help you identify whether getting a loan and paying for a mortgage is something you can afford. Furthermore, you need to know how to improve your credit score and get it as high as you can. This will be important in getting approved for a loan.
Research the Market
Once you’ve had adequate knowledge of how much you can afford, you can proceed with market research. Try to see what houses are in your price range. If none of these houses fits your needs and preferences, you may need to save up for a few more months or years and keep improving your credit score for a bigger loan.
Get Lender’s Approval
If you’re already quite confident with your credit score and personal savings, it’s time to get a specific number. Prepare your personal information and credit report, which includes your debts and assets. Once all of these are ready, talk to a lender about mortgage loans. They will then provide you with an exact number of how much you can borrow.
List Your Preferences
Now that you have a specific number, it’s time for the real house-hunting. To make things easier, grab a pen and paper and list down all your needs and preferences. Whenever you browse through the different listings, try to determine if a house ticks all your boxes. You may not be able to find a home that gives you the complete package, but knowing what you’re looking for will help you decide.
Hire an Agent
Looking for a house can be highly stressful and overwhelming. That’s why it’s a good idea to hire an agent. More often than not, a real estate transaction would cost around 6% of the total market value of the home, which is split between the buyer’s and the seller’s real estate agent. This means that if a house is around $200,000, each agent receives $6,000. It may sound like you’re paying big bucks, but it’s worth it considering all the benefits of hiring a real estate agent you’ll receive.
Once you or your agent have found a home that you want to buy, discuss a fair price with your agent and make an offer to the seller. Asking for the right price is essential when purchasing a home because if you ask too high, you might lose money. On the other hand, asking too low might end in rejection. A fair price will help you negotiate with the seller and determine a final quotation.
Once both sides have agreed on a price, next comes the crucial part. While most houses may seem perfectly fine at first glance, some problems might be hiding somewhere. This would eventually cost you a lot as you would have to repair all of these. That’s why you need to guarantee that you don’t have to spend too much on repairs and renovation. Ensure that you hire home inspection services to find out if there are problems with the house you plan to buy. They would also provide you with an estimation of how much you need to spend on repairs if there are damages to the home.
Lastly, once your funds are ready, you’ve agreed on a price, and the house had been inspected, it’s time to finish the paperwork. Don’t worry. Your real estate agent would still help you with this and prepare all the necessary documents. Your lender would also provide you with the list of requirements you need to get that loan. Once the paperwork is finished, you can now move into your new home.