5 Steps For The First-Time Buyer
Buying a home is the American dream for most people. Achieving this goal can take years for various reasons. Now, that the day has arrived it will quickly become 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 get over whelmed. Once you hire a real estate agent (which is free) they will guide you through the entire process.
Here are a few tips to get you familiar with the process.
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 home owners 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. This is a huge step that must be observed. Most agents include a subject to clause in the purchase contract stating that the home must pass an inspection. Never skip this step! There could 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 that is amiss can be utilized as a bargaining point in the sale of the home, or if severe enough; can simply be reason to walk away from that particular home. An inspection fee is usually paid for by the buyer, so you should include this fee into your budget.
5. Close. 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!