Buying a home is a process and it can be a daunting one if you’ve never done it before or haven’t done it for a very long time. If you are in the market for a house, here are the basic steps of house buying to help you prepare for the process:
- Start researching the area. Even if you have a couple of months before you actually want to buy a house, starting your researching early can help you find the right neighborhood and can allow you to see the average prices for homes in the area.
- Determine what you can afford. If you’ve never made a house payment before, figuring out how much you should pay and how much you can pay might be difficult. In general, making a down payment of 20% of the home’s total price is standard and your total house payment should be less than or equal to about a third of your monthly income.
- Get pre-approved for a mortgage. Getting pre-approved for a mortgage before you even start home shopping can make you much more attractive to buyers, as there is a much higher likelihood that your financing will actually come through.
- Find a real estate agent that you like. Your real estate agent should know the area intimately and should have your best interests at heart. Her goal should be to get you into the right house as quickly as possible.
- Start looking for homes. There’s nothing wrong with doing your own research, while your real estate agent is also looking for listings. Being vigilant about looking up homes for sale in your desired area will allow you to jump on a home that is newly listed before other buyers snatch it up or to see when a home’s price has been reduced.
- Make anoffer and get an inspection and appraisal. Once you’ve made an offer on the home you want to buy, you should have that home inspected. After you start working with Home Sure Lending to choose your mortgage, you should also have that home appraised.
- Do your paperwork and close the sale. This sounds like the easiest part of the process, but closing on a home could take a month or more.