Steps To Take

When it comes to buying a home it’s been described as the American Dream. How could it not be, it’s where so many of your memories come from, it’s the place you sleep, have warmth and shelter, and it’s the place where you celebrate with friends and family. Buying a home happens in a series of steps. They all seem like a big deal, but once you know the steps ahead of time you realize nothing is a big deal when you’re prepared for it.

Have A Down Payment

In order to buy a home, you need money, which for most of us is money that you borrow from a Lender. The Lender covers the biggest portion of the purchase. But you still have to contribute, which is why you need a down payment. The truth is, one first step to buying a home is to save for the down payment. If you’re one of the people who have already saved for your down payment, congrats your already past step 1 and didn’t even know it. In most cases, lenders require anywhere from a 5-20% down payment. Some even get as low as 3%, having the right Lender will help you easily find out all of this information. Which brings us to:

Get Pre-Approved

When it comes to buying a house you need to know what you can afford. And unless you’re paying in all cash, the best way to know how much a house you can afford is to get pre-approved. The pre-approval process is based on your credit and the amount of available down payment is taken into consideration. The Lender will look at any owed debt and whether or not you’re a first-time homebuyer.

Decide On A Location

Once a person knows how much he or she can afford in terms of a house, it is time to look at the details of where to live. Often people choose a location-based on factors such as family and work. Although a person may have a general idea of where he or she would like to own a home, it is important to consider all of the options. A person should visit potential locations keeping in mind his or her family's lifestyle and commute.

Decide On A Type Of Home

The type of home that a person prefers is a factor to take into consideration when determining where to live. This can be determined by a wide range of things such as: what neighborhood do you want to live in, what style of home (condo, highrise, etc…) you want to live in, or what school district is close to (even if you don’t plan to have kids this is important for resale value, just say’n). Maybe you need to think even a little deeper, where is my gym, grocery store, or 7-eleven. Or even better where are you going to put your home gym?

Choose A Real Estate Agent

A real estate agent is what you could consider a tool for those looking to buy decide to utilize. An agent will understand the real estate market and lead homebuyers to the homes that will best suit them. As a result, this will save the home buyer time, money, and frustration. Your agent should be someone who listens and has no problem answering any questions that are asked, and if they can’t answer the questions when asked they should be able to find the answer because that’s what good agents do.

Visiting Properties

Now that a home buyer has determined the type of home that he or she is most interested in, the location, and has obtained the services of a real estate agent, it is time to view available homes in the area. Of the steps to buy a house, this is often one of the most enjoyable. Your real estate agent will locate and screen homes and present you with the options that best match your criteria. During this time you should not feel pressured or make hasty decisions.

Making The Offer

Once you have found the perfect home, it is time to make an offer. You will make an offer based on what comparable properties have recently sold for, what you feel the value of the home is worth, and any other specific factors related to this transaction. Your agent will draft a contract that is agreeable to you which will include the price of the offer as well as terms that you and the seller will need to meet in order to achieve a successful transaction. Your agent will ensure that the contract meets all of the necessary legal requirements.

Inspection

After you come to an agreement you will arrange for a home inspector for the property. A qualified inspector will check the foundation of the home, plumbing, electrical systems, the roof, walls, and visible insulation. An inspector will also look for signs of mold, asbestos, and pests.

Obtain Insurance

You will need to purchase homeowners insurance for the property. This will protect you and the home in the event of a fire, theft, or other potential liabilities. Title insurance is another type of insurance that homebuyers often consider. This will protect you against any liens on the title of the home.

Close

Prior to the closing date, you will want to verify with your agent, lender, and escrow company that all of the necessary documents have been signed and terms met. If they have not this should be taken care of immediately to ensure that there are no last-minute problems. You will also want to verify what forms of payment are acceptable. On the closing date, closing costs and fees will be paid.