Sept. 27, 2016
Buying your first home is a huge decision, and can be quite exciting. However, it is important to know what you are doing! Home buying is a complicated process, and many people lose money and time when they don’t know how to do it properly. Be sure that you are getting the most out of the experience by following the guidelines provided here.
Start your Research Early
Get to know the housing market. Is it a good time to buy? Are interest rates changing? How many homes are currently on the market? The research portion of home buying is the lengthiest portion, and is often the step that first time home buyers skip. Don’t spend more than necessary on your home. Watch the market trends in the area you are looking to buy in to gain the best insight on your home investment.
Determine Your Budget
This is the step that most people start with. Knowing your budget helps you begin your search for a home, as well as helps determine your location in many cases. It is recommended to buy a home that costs no more than 3-5 times their annual household income. Don’t make yourself house-poor by purchasing a house that is out of your budget.
Get Pre-qualified and Pre-approved for Credit for Your Mortgage
If determining your budget is challenging, getting qualified can really help. You will get a total number for how much a lender can give you. Take caution though, it’s not always wise to take the full amount that you can receive.
Find the Right Real Estate Agent
A good Real Estate Agent can make or break the deal for your dream home. They also can provide great insights to the area and help find listings through the MLS. For more information on choosing a good agent, visit this webpage.
Shop for Your Home, and Make an Offer
Take the time to search hard and find the perfect home for you. This page can give you more specific information on the home buying checklist.
Select Your Loan
Working closely with a trusted mortgage banker can help you pick the best mortgage. Having someone to help answer all the questions you may have is key in making the best decisions possible.
Have the Home Appraised
The appraisal will let all the parties know that you are paying a fair price for the home. Be sure to have an appraiser be independent and impartial.
Coordinate the Paperwork
There is a lot of paperwork involved in buying a home. Your lender should help do most of the heavy lifting in this area.
Close the Sale
Grab a good pen and don't be afraid to ask questions throughout the process. It generally takes a few days for the paperwork to process, but once the seller has been paid, you are ready to move in to your new home!