Do you know what the steps are to actually buy a home? If you’ve never bought a home before, then you may not know. Even if you have bought a home before, then you may not remember because the home-buying process is not a common process (unless you are a real estate investor!).
Below are the steps that you should take when you are about to buy a home.
Check out your credit score.
Do you know what your credit score is? Your credit score will determine if you will be pre approved for a mortgage, and it will also determine what type of interest rate you will be approved for. A lower credit score most likely means a higher interest rate – which is something that you should try to avoid.
If you can wait to buy, try to make sure that your credit score is where you want it to be. Talk to a mortgage adviser, such as with First Mortgage, so that you can learn more about this.
Determine your home budget.
What amount are you looking to spend on your future home? Different areas of the world have different home prices. A low-cost of living place like St. Louis may mean that you can get a good home for around $200,000. A high cost of living city may mean that this same exact house may cost $500,000.
Who are you getting your mortgage through? You want a company that won’t cause a lot of hassle and that will give you the best interest rate. Great customer service doesn’t hurt either.
Find a real estate agent.
Do you plan on getting a real estate agent to help you look for houses? This is definitely a good idea if you are completely new to the area that you are looking at (maybe you received a promotion in a new city and have to move). The real estate agent will then try to find the best neighborhood for you depending on what you are looking for.
A real estate agent can also help you even if you are not new to the area. They are professionals when it comes to buying homes, and they can help you find the perfect home sooner. They can also help with the negotiating process as well.
If you are interested in further reading about this, read MSN’s article Do you need a buyer’s agent?
Now, you actually need to get out there and find a home. You might start out by browsing online. After you narrow down your online options, you may then decide to view them in person. Remember to look at houses both at day and night once you decide what house you want. You can then get a better idea of what the neighborhood is like.
Make an offer on a home you like.
Once you find a home that you like, you will need to put down an offer. Your offer may be rejected, and then you will have to go back to the previous step.
Get a home inspection.
If your offer is accepted, then you need to get a home inspection. Don’t forget about this!
Start the closing process.
After your offer is accepted and nothing too bad happened during the inspection, then you will begin the closing process. You will sign so many papers that your signature will look completely different at the end 🙂
Pack your things and then unpack them!
This is always the best part. You finally have the keys to your house and you can unpack all of those boxes that you packed recently.
Have fun and enjoy your new home!
What other steps do you recommend when buying a home?