There’s a lot of effort and time required in buying a house. Follow the steps outlined below to have a manageable process:
It’s advisable to start checking the websites, magazines, and newspapers with real estate listings early enough before you start the purchase process. Make note of homes that interest you, and monitor how long they stay on the market, and changes in the price.
Determine Your Budget
If you intend to make a 20% down payment, then it’s recommended that you look for a home that is within three to five times your annual household income. This is usually a sole determination based on your financial capability.
Seek Prequalification and Preapproval for Your Mortgage Credit
Contact your mortgage banker with such information as the amount of savings and investment made, as well as income for prequalification of a mortgage. Upon review, the lender determines how much you qualify to get. Use the figure given to approximate the price range of the potential home that you want to buy. This will be followed by preapproval for credit after you’ve provided your financial documents like bank statements.
Engaging a Real Estate Agent
Getting the right real estate agent can provide some crucial information that is not in the public domain. They’re valuable with their negotiation skills, buying process and familiarity with the locality you want to live in.
Scout for Your Home and Make an Offer
Using the checklist, you made during the early search, start touring potential homes within your price range. It may be useful to take photos or videos for review later as you can’t remember them all. Some of the crucial aspects to note during the tour include plumbing, electrical system, door and windows, and a general evaluation of the neighbourhood.
Once the seller accepts your offer, contact your real estate agent for an inspection of the home to check for any signs of structural damage. Both you and the seller will get copies of the inspection findings.
Select Your Loan
Engage your mortgage banker to help you choose the best-priced loan program
Your lender will usually engage an independent appraiser to estimate the value of the property you’re buying. Most appraisers are members of third-party companies with no association with the mortgage banker.
Purchasing a house involves a lot of paperwork. In most cases, a title company handles all the paperwork to confirm that the seller is indeed the rightful owner of the property you’re purchasing.