Buying a house can be quite a difficult process, especially if you have no idea where to start and what you actually need to do. It takes a lot of time, effort and knowing how huge of an investment it is can put even more pressure on you. Well, you can say goodbye to stress and confusion, as the following steps will introduce you to everything you need to do regarding your home buying process.
Get Your Finances in Order
First of all, you should research particular houses to get an insight into how long they remained on the market, as well as learn about potential pricing changes. When you get a sense of the housing trends, you need to determine how much you can actually afford to pay for a house.
Experts recommend that anyone buying a house should choose one that costs no more than 3 to 5 times their annual income, if they are to make a 20% down payment. However, you should make your decision based on your own financial situation and your needs.
What’s important is to pull your credit report, since it can say a lot about your financial history and it is crucial for approving your mortgage application, as well as for determining the interest rate. Getting your credit report will also help you make sure that you are not being penalized for certain old and paid debts, since mistakes are common.
Find a Real Estate Agent
Real estate agents can guide you through your home buying process, as they can provide you with valuable information on the housing market. That is why it is crucial that you find just the right one to help you choose a house according to your needs and the best part about it is that it wouldn’t cost you anything, since real estate agents are compensated from the commission that the house seller pays.
Begin Your House Hunt
When you start shopping for a house, you need to check the details of each and every house you go to in order to make sure everything is working as it should, from the electrical system and the plumbing to all the other details, including whether the doors and windows are closing properly – everything is important and it will affect the price.
When you find your perfect house, your real estate agent will make an offer and, after you reach an agreement with the seller, the house will go into escrow, which represents the time necessary for the completion of all the other steps in the home buying process.
Get a Home Inspection
Home inspection is very important, as it will help you check for potential structural damage or anything else that may need to be fixed. It protects you in that you can renegotiate or withdraw your offer if there is certain material damage to the house.
Once you and the seller get a home inspector’s report, you can ask for any potential damage to be fixed before closing the sale, after which you can visit the house again to ensure everything works smoothly.
Get a Mortgage
There are a lot of different loans you can choose from, but you need to find one that will meet your personal needs. The same goes for lenders, so make sure you research them thoroughly and determine which one is the best for you.
When choosing a mortgage plan, knowing only the basics is definitely not enough, so make sure you learn everything there is to know about mortgages. Knowing exactly how to get a mortgage will help you make the best decision and apply for the best loan.
Close the Sale
As you might have guessed, buying a house comes with a lot of paperwork, but you don’t need to worry about that, since your lender will make sure that a particular title company handles all of it. The most important part is that they will make sure that the house seller is the rightful owner of the house you’re buying, so that you can proceed to the settlement quickly and without any hassle.
At the settlement, or closing, you will sign all the paperwork, including all the documents regarding your loan, which can take several days to be funded. After that process is complete, the seller will receive a check and you can move into your new dream house.
Don’t take the process of buying a house lightly, since you are making a long-term commitment, not to mention that you are spending a lot of money. Therefore, make sure you gather all the necessary information and understand every step you need to take along the way. Happy house hunting!