It takes a lot of time to buy a new house, but to make it easier and manageable process you should follow these steps:
You should start researching as soon as you can
There are a lot of real estate listings where you could start reading, you can make a list of particular homes you are interested in, make a price list – this can give you a sense of trends in the areas you are looking to move to.
Determine How Much You Can Afford
If the buyers are willing to make a 20% down payment, they usually tend to look for homes that cost no more than three to five times their annual income.
But, you should always determine your own financial stability. It is recommended to use the Affordability Calculator, where you can define how much house you truly can afford.
You should try to be Prequalified and Preapproved for credit for Your Mortgage
There are a lot of steps to do when you start looking for a new home. First, you will have to know how much you can actually spend on buying a home. This is the time when you need to be prequalified for a mortgage. You should provide to the mortgage banker, your financial situation – and this is how you will get prequalified for a mortgage. The lender will have all your pieces of information and will determine how much he can lend to you. Then you will be informed of homes you should be looking for. After doing this process you can get preapproved for a loan.
Look out for the right real estate agent
When you are buying a home – you should rely on top real estate agents. They can provide you with a lot of helpful information on homes or neighborhoods. Their negotiating skills can be very valuable in choosing the perfect home. And the best for using an agent is that you don’t need to pay them anything – they are compensated from the commission paid by the seller of the house.
Make an offer for buying a home
Start looking for homes at the price you are willing to pay. On every home you visit – take notes. If the number of houses you visit is large, start taking pictures or videos – that will help you to decide later.
Make sure to check as much as details you can. For example:
- Test the pipes, the water pressures
- Try the electrical system
- Look at the windows and doors to see if they are working properly
It’s also important to take a look at the neighborhoods and make a note of things such as:
- How much traffic does the neighborhood get?
- Are there enough places for parking?
- In the neighborhood is near the school? Are shopping centers near? Restaurants, parks, or public transportation?
Take as much time as you need and consider all the details to find the right home. Then work with your real estate agent to negotiate a fair offer based on your financial situation.
Get a Home Inspection to check the possible damages
It is recommended to get a home inspection to check the possible structural damages or things that are not working properly. Your real estate agent can help you arrange to have an inspection at the home. If the home inspection finds any damage, you can get a chance to renegotiate the offer, or you can ask the seller to fix the property before making any deal.
Work with a Mortgage Banker
When buying a home you will have a lot of questions and doubts – but having an experienced banker can help you with the whole process.
When choosing a mortgage every home buyer has their preferences. Some prefer to keep their monthly payments as low as possible and some of them want to make sure that their monthly payments never increase. That is why you have to work with a mortgage banker.
Arrange an appraiser
Lenders will try to arrange for an appraiser – which they can provide an independent valuation of the house you are buying. The appraisal will let all the parties involved know the fair price for the home you are looking for.
Organize all the documents
When buying a home, there is a lot of paperwork. Your lender will make sure that the seller is the owner of the house and he will help you arrange all of the paperwork.
Close the deal
To close the process you will need to sign all the paperwork (including the loan documents). It takes a couple of days for the check to be delivered to the seller, and then you can move into your new home.