Has the thought of buying a home ever entered your mind? Renting may be a good option for a start but once you start growing a family, you begin to think about the future and giving your family more security and a safe place to live in. It cannot be denied that your children can also be a major influence on your decision to favor home ownership. If you haven’t realized it yet, home ownership can give you:
- Privacy and more freedom to do what you want in your own home. Upgrading your home for instance can add up to its value which you can benefit in the long run.
- Homes do appreciate in value and can provide a reserve fund for you in the future.
- Of course, there is always that great feeling of achievement.
But how prepared are you to buy a home? The idea can be too overwhelming but the process is not as easy as you think. It needs commitment, preparedness and better judgment.
This article will outline the important aspects of the home buying process.
- Financial Preparedness – As mentioned earlier, buying a home is a long term commitment. You can look forward to years of paying the monthly mortgage, the cost it takes and all. While on a search, make a checklist of all the must-haves you want in a home. Scout through open houses. Do they fall within your budget? What particular home meets your family’s needs? How about your lifestyle? Is it in a perfectly good and desirable location with close proximity to schools, transportation, shopping and more? Typically, you will be required to make a down payment of at least 20% of the purchase price of the house. With these things in consideration, you will somehow get the idea of how much money you need for your home saving plan.
- Mortgage Pre-Approval – This is where you will need to obtain the financing you need for your home. A pre-approval is where the lender asks in detail about your financial information to determine if you are qualified for a home loan and for the maximum loan amount you can get. The criteria will be based on your credit score, income, debt ratios, etc. Once you get pre-approved, you can then have a better chance of finding the right home that is within your parameters.
- Find A Trusted Realtor – A trusted realtor is someone that has years of established reputation and known to provide only the best and quality real estate service. Take advantage of this expertise to get the best possible home deal you can have.
- Negotiation – This is where you realtor presents an offer to the seller after you have decided on a home. The offer will be on the ground of the amount you can afford and what the house is worth. In this case, a home inspection prior to negotiation can be beneficial to establish the real value of the house based on its condition, defects, repairs and upgrades. If the seller decides to accept the offer, a date for the closing will be set.
- Closing Process – This is where the sale of the home gets finalized. You can make a walk-through inspection of the house at least a day before closing to ensure that its condition is what clearly describes in your sales contract. At the closing, all paperwork is completed and any closing costs or legal fees are settled. The title of the property is then transferred from the seller to the buyer.
There can be no greater achievement than having a place you can call your own. Preparedness is very important in making the right choices later. Having a good realtor on your side will ease up the process even more, to safeguard your interests and make certain you are on the right track.
First-time or anything else relating to your home experience, let us know in the comments!