Follow these steps to buying a home including find house, inspect, negotiate price, seek financing, sign agreement and settle the closing costs.
If you want to buy your first house, it is highly likely that you don’t even know where to start. You are not alone. Many persons want to know how to buy a new home and would often ask the question; what do I need to buy a home? You have to ensure that you find the best home for you and the members of your family. There are many things that you need to do when you want to find the perfect house to buy. You need a good house buying checklist. Below is a step-by-step guide for the home-buying process.
Steps in Purchasing a Home
Here are seven steps you should consider when buying a house:
- Find home: Pick a house that is suitable and that you can afford.
- Inspect House: Get a surveyor to examine the condition of the property.
- Negotiate Price: Offer and agree on a price with the seller.
- Seek Financing: Check whether your bank will provide funding.
- Sign Agreement: Firm up the contract with the seller.
- Settle: Pay the price and get your keys.
Find a Home – Home search
Before you start your search for a used of new home you should find a list of real estate companies. They may have the listed property you want to buy listed under homes for sale. You can get a real estate agent to do it for you or do it yourself when there is an offer on a house.
It is a waste of time to look at houses that are priced far beyond your budget. Think about the mortgage payments that you can comfortably afford to pay on a monthly basis. Think also about how you are going to cope if your situation changes or if the interest rates increase. Be honest with yourself and stick with the price range you can afford. Remember, there are other expenses such as mortgage fees that you will have to pay. Before you choose a given house, make sure that you really know it is a home you can afford.
Inspect House Condition
Home buyers need do home inspection to check the condition of the home. This is one of the most important steps in real estate purchase. You should contract an experienced surveyor to do this for you. The property surveyor will survey the property and check for any problems. If problems are identified by the surveyor, they will definitely affect the value of the property. Before you hire an agent, you should find out how much he is going to charge you. When the survey is complete, you may want to renegotiate the price of the house.
Negotiate House Price
When to buy a home in important to make sure you get the best price. You do not want to pay more that what the house is worth in the real estate market. Also you want a price that will fall within your credit score if you have to get a bank loan. When you finally find a used or new home that you would like to buy, the next step is to make an offer to the landlord. An offer is sometimes made through a real estate agent.
You may have to renegotiate because the lender may value the house at a lower price than the offer. This will mean you have to come up with a bigger down payment. You may also want to renegotiate because the surveyor identified problems that would be very costly to fix. This will be the most stressful stage in buying real estate. Some people let their estate agent do this on their behalf. The seller may decide to get his/her property off the market or may accept a better offer from another buyer.
Seek House Financing – Mortgage Lender
Once you have agreed to buying your first home it is time to talk to your bank about mortgage financing if you do not have personal finance. You may need a long term fixed rate mortgage to buy a house. Go to a bank that has low interest rates. The bank will check your debt to income ratio to make sure you can afford the monthly payment. Your mortgage application can be approved or rejected for various reasons, such as your credit score. You should check your credit report to make sure you are in good standing for the mortgage payment. Additionally you can use the mortgage calculator provided by the bank to see what the repayment will be like. Your banker will of course need a signed contract for the agreed price as well as private mortgage insurance.
Bear in mind also that you will have to pay taxes and insurance on the home. You may therefore have to borrow enough for taxes and necessary home improvement.
Sign Agreement for Buying House
Here is when you are ready to complete the home purchase. How long does it take to buy a house is a question people frequently ask. If everything goes well, you will firm up the agreement for your home real estate in quick time. This amounts to signing a contract with the seller to complete the guide to home buying. Go through the contract with your solicitor to verify everything is in order. At times real estate agents sign on behalf of the buyers.
Final Step in the Home Buying Process
Settle – Pay for House
This is the point at which you are ready to buy. The process of buying a home will reach completion when you settle the closing cost. This closing costs can be settled by check, cash or credit card. Your solicitor will register the sale and you will become the proud owner of the property. After settling you may want to some improvement and these landscaping designs can help you improve the value of your property.
Buying a House Checklist
Buying a house is stressful. There are many things to look out for and finances to be managed in the process. A simple checklist with home buying tips will therefore be helpful. Here’s what you should look at before buying a house.
1. Cost of house repairs
You want to be present during the inspection. Visit the house with a trusted inspector before you make the final decision. They will assess potential issues and damages. For instance, if you’re buying an old house, chances are you will renovate it straightway. An experienced inspector will give you estimates and you can make an informed decision. Again, you don’t want nasty surprises along the route – like a leaking roof. If you have to get a home loan remember to compare rates such as service charges and interest rate.
2. Property Insurance
At this step in the process, your lender will need an appraisal and a homeowners insurance certificate. Whereas the appraisal will be in line with the purchase price, you will be required to manage upcoming insurance costs.
On the final day, the attorney (or escrow officer) will determine the total charges that will be incurred by the new homeowner and the seller. Come prepared for a ton of paperwork.