WorldExecutivesDigest.com | 7 Steps of Buying a House: A Complete Guide to Your First House Purchase | For many people, buying a home is one of the most stressful processes life has to offer. From house-hunting to tieing up everything with your current home, it seems that there’s always something new to do.
However, as Americans bought 5.64 million homes in the midst of a global pandemic last year, you can do it now too.
The truth is that buying your first house isn’t as hard as many people make it out to be. By taking the time to understand the steps of buying a house, you can help ensure that the whole process goes off without a hitch.
To help you better understand how to buy a house, we’ve put together this guide.
Read on to learn more.
Ensure That the Time Is Right
It’s important to have your finances in order before buying a house (more on that later). However, you also want to ensure that you are ready to buy one.
Regardless of how big your future house will be, signing off on one is a huge decision. Make sure you think everything through beforehand, as you don’t want to get dragged into something you’ll later regret.
Are you considering starting a family? Do you plan on being there for a while? Asking yourself these sorts of questions beforehand can help ensure you make the right decision.
Get Your Finances in Order
Of course, as you probably know, buying a house is expensive. So expensive, in fact, that even a starter home will set you back tens of thousands of dollars over a period of years.
Remember that just because you can afford something doesn’t mean it’s right for you. Living in a beautiful home isn’t worth it if you have to squeak by each month to make ends meet.
Spend some time calculating all the bills you have to pay each month. If adding on the price of your home makes you feel at all nervous or uncomfortable, you might want to go with a more affordable option.
Have a Mortgage Plan
Financing a home through mortgages and loans isn’t fun, but it’s usually necessary. Because of that, taking the time to explore your options is essential.
Some of the common types of mortgages include:
- Conventional loans: Mortgages with minimal down payments, extensive qualifications, and little to no federal government guarantee
- Jumbo loans: Mortgages that come with higher lending limits
- Renovation loans: Loans that allow you to lump home improvement costs into the home loan
- FHA loans: Mortgages that come with the backing of the Federal Housing Administration
- VA loans: Loans from the Department of Veteran Affairs, meant for former service members
Consider working with a financial advisor to help make getting a mortgage as easy as possible.
Work With a Realtor
Many people try and find a suitable home on their own to save money. This is almost always a mistake.
Provided you work with someone qualified, realtors are almost always a worthwhile investment. They have the skills necessary to walk you through the entire buying process. If they’re from the area, they can also help you find a home in line with your wants and needs.
You’ll end up saving time and money in the long run by working with a realtor.
Make an Offer
Once you and your realtor start to narrow in on homes that interest you, your next step is to make an offer. This is another area where working with a professional will prove invaluable.
If the seller rejects your offer for one reason or another, you can decide to counteroffer or walk away. The choice is yours but remember—things move fast in the housing market. If you wait too long, there’s no guarantee the home will still be there.
If they accept your offer, you’re one step closer to moving in. Most of the time, you’ll put down a deposit that will later go towards the cost of the home.
Schedule an Inspection
A home inspection is another necessary step of the buying process. It might seem like another hoop you have to jump through, but you’ll thank yourself for doing it down the road.
If the home inspection uncovers anything, whether it be mold, damage to the foundation, or something else, it gives you a chance to return to the negotiation table.
If the homeowner doesn’t offer to repair the problem, it also allows you to try and bring down the price.
Once you settle on a home, your final step is to settle inside it. Congratulations!
On closing day, make sure to take one final walk-through with your real estate agent to ensure that everything is ready for you to move in. You don’t want there to be any problems you discover later on.
You’ll also want to make sure the title of the house ends up in your name. Consider working with a housing title company for help with that.
Understand the Different Steps of Buying a House
If you see a home in your future, it’s never a bad idea to take and step back and learn more about the buying process. In doing so, you’ll ensure you have everything ready before you get started.
Use this guide to help you better understand some of the major steps of buying a house. Remember—working with the right people throughout the process can make all the difference in the world.
Are you looking to learn more about real estate? If so, check out the rest of our site for more great content.