For years you have been scrimping and saving, preparing for that day when you could purchase your first house. Now, that day has arrived. However, now that it is here, it becomes evident that the process of home buying can be a little overwhelming for a first-time buyer. So, what to do? first of all, don’t panic and rush out and put a down payment on the first house you see. This is going to be a big purchase so you will want to plan your steps very carefully.
Steps For Buyers
1. Get your credit sorted out
Having a good handle on your finances will only make this process easier. It’s great that you have a down payment set aside, but have you secured financing yet? Having financing arranged before you start looking for a home is one of the best moves you can make. However, having financing arranged before you start looking means having the credit to get pre-approved for a mortgage.
2. Get pre-approved
Being pre-approved for a mortgage allows you to shop worry-free and it lets you know ahead of time what you can afford. Having your mortgage pre-approved will also be an attractive asset to realtors and homeowners as it shows them that you are a serious customer.
3. Be Choosy.
This will likely be one of the more difficult steps. Buying a home is a lot like looking for a rental property but with much more stress and emotion, and a much bigger payoff. If you are not sure what you should be looking for in a home, consult extensively with your realtor and friends that own homes. Start thinking about what you need in a home. What are your requirements in terms of rooms, location, amenities, and other such aspects? Making a list is the easiest way to keep track of the necessities.
4. Get an Inspection
After finding the home that you can see yourself purchasing, have the home inspected. Most people include a subject on the purchase contract that the home must pass an inspection. Never skip this step! There could be one of many things wrong with the home you have chosen that the owner may not even know about. Inspections will survey the plumbing & electrical systems in the home as well as the roof and the structure itself. Anything amiss can be utilized as a bargaining point in the sale of the home, or if severe enough; can simply be a reason to walk away from that particular home.
Assuming that everything has gone according to plan you should now merely be concerned with your possession date. The home passed inspection, your offer was accepted, and the deal closed. Congratulations! You have bought your first home!
Although home buying can be a stressful endeavor for some people, the payoff is well worth it in the end. Instead of your money going to rent, it will now be used to pay off your mortgage and have an asset in your name. It’s important to pick the proper location and educate yourself further on the processes of home buying. Become familiar with the terms that are used and pick a realtor that best suits your needs. Education is something that can go a long way for those that are purchasing real estate, regardless if it’s your first time or not.