Buying a home is likely the biggest investment you will make in life. The home buying process can be overwhelming when starting out and many first time homebuyers don’t know where to begin. Here are some steps to buying a house for you to follow when you are ready to make the plunge.
7 Steps to Buying a House
1- Get financially prepared
Preparing yourself financially is important before buying a house. You should save enough money for downpayment and closing costs. You should also minimize the amount of consumer debt you have and secure stable employment. Read here for more tips on how to financially prepare yourself for a mortgage.
2- Get pre-approved through a mortgage lender.
After getting financially prepared you should seek out a mortgage lender and get pre-approved. Before searching for homes it is crucial that you know whether or not you’d be approved for a mortgage and how much you qualify for.
3- Research where you’d like to live.
Now that you know how much of a mortgage you are approved for, start researching what are you’d like to live in and what type of home you can afford to purchase in that area. This will help you to set realistic expectations for what type of property you can buy in your budget.
4- Find a realtor.
Finding a realtor will help you to get the house hunting process in motion. Make sure they are professional and have experience in the area and price range you are searching for. Your realtor should also be able to advise you on market conditions in your targeted area.
5- Look at houses in your targeted area.
Here’s the fun part: actually searching for a home. Begin looking at homes in your price range and get a sense of what types of compromises you are willing to make. Keep a checklist with you to help remember the different home you have viewed.
6- Collect documentation for your lender.
While searching for home you should start gathering documentation for your lender. This will help you to be proactive and have everything together when you find the house you want to buy.
7- Negotiate a good price and go under contract.
Once you’ve found the house you want to buy negotiate a fair price for market conditions and go under contract. Stay in close contact with your realtor and lender as they guide you to the closing process.
Following these steps to buying a house will make the process much smoother for you. Hopefully it will also lead to a home you can create memories in.