Buying a house is one of your biggest lifetime investments. So, when you’re faced with such a huge decision, you want to ensure that everything runs smoothly from the start. That’s why some buyers prefer to consult with real-estate professionals to get specialized advice on when, how, where, or whom to buy from.
Personal finance expertise, and legal details are important when making such a big step, so you should not rush the process of purchasing your dream house. Instead, you should consider the following checklist points for your journey. These steps are important must-do’s when considering purchasing a new home.
The first thing to consider when buying a house is being honest with yourself. Houses are usually quite expensive to purchase, so chances are your budget won’t cover that. Doing an honest financial checkup on your savings is necessary.
You will most likely conclude that you need a mortgage – and that’s fine. Most buyers do. The important thing here is to check your credit reports, ensure that you have a stable income and are able to make monthly payments, and take other necessary steps to improving your credit score.
According to Dan Growl, financial advisor at Bestessays.com, your next step is setting a budget. One way of doing this is to make a list of your monthly expenses (including all the potential new-house expenses). Then, subtract this sum from your monthly income and look at the remainder to consider what sum you could realistically potentially contribute to a mortgage per month.
Now it’s time to get approved for a mortgage. But first, find out your options. What are some mortgages that you qualify for? What are the requirements to get approved? Could you potentially qualify? What is the maximum amount of money you can get? Make sure you get quotes from all potential banks and dealers to diversify your options and keep them open.
Real estate agent browsing
The next step is looking for a real estate agent to work with. Buying a home can be quite difficult, so often it can be useful to find someone to advise you. While you could look up real estate agents online, one option would be getting references from friends and relatives. Talking to an experienced real estate agent can be valuable as they can provide you with on-point information on when, how, and where to buy.
It’s time to hunt houses and check out those you like the best. First, pay attention to how you feel as you enter the house – does it give you a familiar feeling or is it too cold for you? Next, look at all the details that must be fixed. If something needs repair, ask the owner if they’d fix it.
Take time to check out different houses. You could make a list of those you liked and slowly narrow it down to those you’d see yourself living in. Leave enough browsing time to explore multiple houses!
Next, you need to gather all the necessary documents. Now that you have chosen a house, it’s time you organise yourself well enough to give yourself a chance of buying it. You’ll need access to your tax returns, pay stubs, bank statements, investment account statements, proof of funds, letter of recommendations, and of course, your ID.
Get started on your financial arrangements as soon as possible with a view to obtaining pre-approval from a lender. It will take time to get approved, so the sooner you gather the documents and have everything prepared, the better.
Offer and negotiation
In some circumstances you may be able to make an offer to purchase prior to any auction. If you decide to do so, provide the other party with a reasonable opportunity to consider it. If they make you a counteroffer, you can consider negotiating. Bidding at auction is a slightly different scenario.
One of your last tasks is hiring someone to do home inspections for you prior to purchasing. The house could have issues you’ve never seen or considered, so hiring a specialist to do this work is your best bet. You should consider both pest and building inspections for any house that you are seriously consider purchasing.
Closing on your new house
Now that you’re all set, your last task is successfully negotiating the sale and getting the keys to your new home. Don’t forget to read the agreements and contract twice before signing it, and it is usually considered prudent to hire a lawyer or conveyancer to perform the transaction for you. Once you have purchased a home, you should consider buying home insurance.
You finally made it! You bought a home and it feels great. Congrats! Enjoy it. And try not to skip any steps of the process along the way!
About the Author:
Justin is a marketing specialist and blogger from Leicester, UK. When not working and rooting for Leicester FC, he likes to discuss new trends in digital marketing and share his own ideas with readers on different blogs and forums. Currently, he is working as a content marketer at academic writing help and Bestessays.com.
This article is general information only and contains only the views of the author(s). It is not financial advice or recommendations, and does not take into account your personal needs, objectives and financial circumstances. Please carefully consider whether this information is appropriate for you.