Home Buying Guide - Step By Step
Feb 26, 2021
Home Buying Guide: The Process Of Buying A Home, Step-By-Step
Buying a home can be stressful, whether it's your first time or your third time.
But like any monumental task, it becomes a little bit easier - and less stressful - if you manage it in smaller, easier to accomplish tasks. With a little step-by-step planning, you can set yourself up for success in the process of buying a home.
These tips are going to be key in helping you navigate the real estate world and put you on the path to home ownership.
PAY OFF YOUR DEBT
There's no way around that fact that owning a home is expensive. You don't want to start your new adventure off on the wrong foot and set yourself up for failure before you begin.
By paying off all of your current debt you give yourself a safety net in the home-buying process; unexpected expenses come along with owning a home and you don't want to find yourself short on cash.
START SAVING EARLY
It's never too early to start saving for a home. You're going to need money down to be able to qualify for a mortgage (some allow as little as 3 percent down, but it's better to save for 10 to 20 percent).
There's also closing costs on the home that can quickly crop up and can be anywhere from 2 to 5 percent of your loan cost. Sometimes the seller can help you cover a portion of those costs, but it's best to cover your bases and have the money available so you don't miss out on buying your dream home.
DETERMINE YOUR NEEDS
A home is a long-term investment, so you need to plan for the future when you're looking to buy. Are you in the market for a single-family home? Are you wanting to move downtown and want a condo or townhouse? Is your family expanding and you need more room to grow?
Each type of home has pros and cons associated with them, so you need to establish your homeownership goals before you start looking in earnest.
FIND OUT YOUR MORTGAGE QUALIFICATIONS
Once you know exactly the type of home you're looking for, it's time to talk with your bank and find out what kind of mortgages you qualify for.
Getting preapproved for a mortgage will give you an idea of the kind of home you can afford. On top of that, it makes you more attractive to sellers because it means you can close on the home much quicker, which could be the difference between you and another buyer getting the home.
CHOOSE A REAL ESTATE AGENT
No one knows the market better than a real estate agent. They'll work for you to help you find the right homes that meet the needs you're looking for.
Interview a few different agents before deciding who to work with. Make sure to ask about their level of experience with first-time home buyers, and don't be afraid to ask for references; you're about to spend a lot of money and make a huge life commitment so you need to make educated decisions.
FIND HOMES IN YOUR RANGE
Your real estate agent can help you narrow down homes in your price range and help you find homes in neighborhoods that meet your long-term needs.
Don't become too emotionally attached to the first home you find, though. It may take a few tries before you're successful at making an offer before a house is snatched up by someone else. But don't worry, there are always more homes to choose from!
MAKE AN OFFER
Once you find that home that you just can't live without, it's time to make an offer.
If you've saved for a good down payment and gotten pre-approved for a mortgage, you've set yourself up on the right track to being first in line with sellers.
Work with your agent to find out if you're making a competitive offer while staying within your budget; you don't want to be impulsive and bid yourself out of a deal that's out of your safe range.
GET A HOME INSPECTION
Just because everything looks great doesn't mean there aren't underlying issues with a home.
It's best to have a professional perform an inspection of the home to ensure there aren't any serious issues with the home. You can often negotiate with the seller to have repairs made or to reduce the price of the sale if any issues are discovered.
When you get to closing, congratulations! Be prepared to sign a ton of paperwork.
This is when your real estate agent becomes your best friend. They'll work through all of the necessary steps for you and help you navigate any issues that come up in the closing process.
Make sure you read every document before you put your signature on it, and if you're ever unsure or don't understand something, ask your real estate agent for an explanation.
If you're ready to buy or sell a home, the agents at Orizon Real Estate are ready to help you. Give us a call today to get started!