The Process Of Buying A Home
Buying a home takes time and could be a overwhelming process. It is different from every other kind of purchase. A number of steps are involved in this lengthy process, and you have to prepare yourself in every aspect. Being prepared and ready for the process will help you buy a house of your choice, without compromising on anything. Also, it’s not something that you can afford to go wrong in.
Read on to find out the steps involved in buying a home.
- Figure out your Funds:
Home ownership is expensive. Along with the mortgage, you will also have to figure out if you’re financially stable to take care of the expenses that come with buying a house, like taxes, insurance, bills, etc. also, it is advisable that you pay all your debts before you take on this one.
- Look Around for a Mortgage:
Shop around, this is important. You have the option of signing up the first financial institution you see or your regular one. But, when you look around, you will come to know of different interest rates and your eligibility. Also, the pre-approved mortgage will prove to be an added advantage as sellers will know you’re serious.
- Hire a Real-estate Agent:
Do not believe that you can do without an agent. In most cases, sellers pay the fees of agents. Also, agents know the buying process, the market, prevailing rates, negotiations, and sellers also. To find a good agent, get referrals from friends and families. Also, online reviews help a lot.
- Decide the location:
Different localities have different price budgets, and once you have decided your budget, accordingly you can look for areas. Also, the locality you choose should be safe, have amenities around, and any other thing that you care about, like office, schools, restaurants, etc.
- List your requirements:
Being transparent with your needs will prove to be beneficial and time-saving. Make a list of things you want in and around your house, like the number of bedrooms, washrooms, the size of land, how many stories, kind of house, etc. Some localities might only have duplexes, and in case you’re looking for a compact apartment, the locality doesn’t qualify.
- Start looking for houses:
Get your agent to make a list of open houses to see. You can also check a list online. Start touring as many homes as you can. Do not decide without comparing. While you check out the houses, check the plumbing, electrical systems, doors, windows, locks, and everything else that matters. Talk to the neighbors and get to know about problems they might be facing. Also, what kind of facilities is locality providing? Once you like a house, check out a few more, and then get on the final decision.
- Get the pre-approved loan approved:
Your loan has already been pre-approved. Getting the final approval will take time. Go back to your lender and let them know you have finalized the deal.
- Request for a Home Inspection:
A home inspection is, and you will have to pay for it. Paying for it now will save you a lot of your money later. The inspector will look for hidden problems in the home. If he discovers anything, you can either drop the house or negotiate for a lower price.
- Escrow can take time:
Once everything is finalized, the house will go into Escrow. The escrow holder will ensure that all the documents and money have been arranged and put together before closing the deal. This process is time taking, and you have to be patient. After all, all this is being done to protect all the parties involved.
- Close the deal:
After escrow, all the documents are put together, and the money has been arranged. Now, to close the deal, be prepared to sign a lot of papers. These signed documents will then go to your lender, who may take about two days to approve the amount. Once the seller has the amount, you can move into your home.
This process of buying a home is not easy. Go through this guide and understand how to get started. Don’t worry; you can do this. All the best.