Buying a home is a big leap and achievement in your adult life. Following the steps to buying a house will help you in the process. Plus, it makes the purchasing experience enjoyable rather than stressful.
Before you start your home buying process, make sure you look at these ten basic steps.
Buying a Home in 10 Steps | Home Ownership Guide
1. Are you ready?
Americans stay in their homes for seven years.
Maintenance on a home cost 1-4% of the original price of the home.
Before taking this big step in your adult life, financial stability is a must.
You should be able to pay for your mortgage, yearly maintenance costs, and other possible future repairs in your home without having to stretch your finances to its limits.
2. Become the Best Candidate
Examine your credit score and work toward a goal of 750.
A good credit score also gives you better payment options and favorable interest rates.
3. Become Pre-approved
Make sure you have a pre-approval letter because it gives you buying power and helps you decide on a budget.
Getting pre-approved simply means that you are financially eligible to secure a loan for your home purchase.
4. Come Up With a Budget
Assess your income and expenses to decide on a budget for your home purchase.
Buying a house does not only include the actual price of the property.
You will also need to set aside money for possible renovations, maintenance, and future repairs.
5. Pick a Real Estate Agent
Around 89% of home buyers hire a real estate agent.
They help throughout the entire buying process and make buying a home less stressful.
— Pierre Realty (@pierrerealtypa) June 20, 2017
6. Find Your Property
Set up appointments to visit different properties within your budget.
Home buyers often visit 12 homes before putting in an offer, do not settle for a single property when considering buying a house.
It would be advisable to have 2-3 options to choose from.
Knowing what’s currently available for you in the market ensures that you are getting the best value possible from your purchase.
— Ronnie Tosoni (@ronniet50) June 5, 2017
7. Put in an Offer
Refer to your budget and the condition of the home when making an offer.
Consider areas that would need repairs in the future.
You can use this to your advantage as you seek for discounts on your purchase.
8. Get a Home Inspection
Before signing an agreement, get a home inspection.
This helps identify any issues with the home that are advantageous for negotiations.
Hiring a professional to do the house inspection also ensures that every area is covered.
The structural stability of the home you intend to purchase will be expertly scrutinized by a professional home inspector.
9. Sign the Agreement
The agreement outlines the transaction for the home purchase.
Read the fine print and know the clauses included in your purchase.
10. Close on the House
Once you’re set on the house and the purchase agreement, funds are transferred.
Watch this video for the basic steps in buying a home!
Bought a property recently? How was the experience? We would love to hear from you in our comments section.
Which is the best loan for you? An FHA loan or a conventional home loan? Know the difference via this article on FHA vs Conventional Loan: Which is Your Best Option?