For first time house buyers, purchasing a home can be a really complicated and nerve-racking adventure. Yes, the whole process takes up a lot of effort and time but following the ten stages of purchasing a house outlined below will be of great help in making the whole process more manageable and easy.
- Begin researching early. Start going through newspapers, magazines and web sites for any real estate listings as early as you can. It’s vital to mark any homes that you find interesting and suitable, and inquire if they are likely to be in the market long enough. You should also be on the lookout for any disparities in asking prices.
- Determine how much you are willing to invest. Generally, potential homeowners are advised to go for a house that cost around three to five times their household annual salary. This will enable them clear their down payments on time and moderate their debt amount. However, its advisable to assess your financial position and go for a price that you can comfortably clear. There are also online affordability calculators can do a pretty good job in assessing your financial ability to purchase your dream home.
- Get your mortgage credit preapproved and prequalified. Getting to know the amount you are willing to spend is the first step when buying a house. The ideal way to do so is to get a prequalification for your mortgage. For you to get your mortgage prequalified, you’ll need to give some information about your savings, investments and income to your banker. The lender will then verify the information, then determine the amount of money they are willing and able to loan you. By so doing you’ll be able to tell the cost range of the houses that you should be eying on. After passing the prequalification stage, you can now go ahead to getting your credit preapproved by your lender after presenting the required documents.
- Get a dependable real estate agent. When you are purchasing a house, consider partnering with a real estate agent. They have all the information concerning neighborhoods and homes that most members of the public have no clue about. They also have excellent negotiation skills, area familiarity and enough information about the whole home buying process. To top it all, you don’t get to spend a dime on an agent since their compensation comes directly from the seller inform of commission.
- Tour the available houses and make a bid. Go from house to house in the homes you identified within your price range. You can take videos or pictures of this homes since commemorating all of them will be difficult. Do a complete check on all the homes. This includes checking the electric systems, testing the home’s plumbing systems as well as the working of the doors and windows. You should also consider the traffic, the nature of your immediate neighbors as well availability of amenities such as restaurants, schools, shopping centers, public transport and schools. Take your time when looking for your dream house and once you’ve found the right one, negotiate for a fair price. After agreeing on the price, the home will automatically go into escrow, which will give you more time to complete the other steps in the whole process of purchasing your home.
- Get the home inspected. It’s important to have a home inspection expert verify the safety of your home by checking for damages on the structure or areas that may need some fixing. Your real estate agent will come in handy in ensuring that the inspection is done a few days after the seller has accepted your offer. If there are any material damages, it’s important to withdraw from the purchase, but in case of minor damages you get a chance to negotiate for a better offer.
- Select your loan with the help of a mortgage banker. Financial institutions have a wide range of loan programs and they are all well known for their remarkable customer service. Definitely you’ll have a couple of questions before choosing the ideal mortgage loan plan but consulting your banker will help in simplifying the whole process.
- Get your home appraised. Most lenders organize for an independent valuation of your homes estimated cost by an appraiser. The appraiser must be a third party company without any direct relationship with the bank. This plays a big role in ensuring that you are you are not overcharged by the seller for the house.
- Manage the paper work. When purchasing a home, there is tons of paper work involved. Your lender will assist you in getting a title company on board to handle the paper work for you and ensure that the property you are purchasing rightfully belongs to the seller.
- Seal the deal. To complete the purchase, you’ll have to sign a couple of documents. This will include the loan documents too. Your loan might take a while to be processed after signed agreements are submitted to the lender, but eventually it will come through. Once the seller gets the cheque, it will be time to move into your new home.
Looking for a house is generally the same as shopping for a vehicle or other luxurious items. Comparing different offers will save you a lot of money. Comparing the interest rates on mortgages will also save you a lot of cash since the interest rates vary from one money lending institution to another. It’s also vital to go over your credit reports before submitting them to your mortgage lender. This is because a slight error can earn you a much higher interest rate than what you deserve. Ensuring that your report is faultless will surely pay. Before purchasing a home, make sure to review the proximity to work, the location, community safety, market statistics and the amenities surrounding it. You’ll most definitely own the place for at least four years and the tinny details you oversee today may haunt you in the future.