Are you ready to buy your dream house? Will this be your first time mingling with real estate agents and property owners? If so, this guide is for you.
Buying a house is a complex process with a lot of factors to be considered. Whether you are a first time buyer or already used to it, it’s an exciting as well as a demanding process.
We will look at 6 basic steps you have to take. After we’ve gone through all six steps, you will have a basic understanding of what purchasing a house entails. From getting the necessary funds to finally securing your new home.
- Get pre-approved for a mortgage
That you have made the decision to buy a house shows you are financially secure to do so. Consult a mortgage specialist to examine your credit score. Ensure that you are qualified to get a large loan.
When seeking mortgage pre-approval, your credit score, income, and down payment are three factors that count. If your credit score is high, you can be sure of having low interest rate accrual on your loan.
Real estate agents prefer to work with clients that have been pre-approved for a mortgage. Ensure that you take this essential step.
- Secure your down payment
It is crucial that you start saving for your down payment early, after you have seen what you can afford based on your mortgage pre-approval. Prepare to put down at least 20%.
You may want to consider biding your time before going ahead with your home purchase plans. This is important because the more your down payment towards the purchase price, the less the interest you will pay in the long run.
- Contact a real estate agent
A real estate agent is supposed to make the process of buying your first home easier. You can find a good agent through referrals or internet search. Look for one that is familiar with the city or neighbourhood you would like to live in. Also ensure that the agent you choose is someone you can get along with.
- Look at available homes
While viewing homes, it is important that you remain realistic and keep your budget in mind. Your real estate agent will help you find properties that fit your budget and at the same time suit your needs. Don’t forget to take a survey of the neighbourhood, because even if the property is right, the neighbourhood might not be.
You should also consider requesting for a home inspection, to be certain that everything is in order in the property you have your eyes on.
- Make an offer
Your real estate buyer agent can help you find out how many offers have been placed on a property and how competitive the market is. You are allowed to make several offers on a home.
- Get legal advice
Purchasing a home involves a lot of legal processes. This is why it is important to have a lawyer with experience in real estate law to review all the legal documents connected with the purchase.
To recap, buying a home is not something to rush into. You need to take your time with it. The important points to keep in mind are:
- Keep your finances and credit score up to par
- Contact a good real estate agent
- Contact a real estate lawyer