Buying a new home can be a scary process full of uncertainty, stress, and second guessing. I am committed to helping make this process as stress-less and worry free as possible. I think this list of nine and a half steps to further clarify the homebuying process and provide a roadmap for prospective buyers to follow to ensure a beneficial first experience in the world of home ownership.
1) Determine your budget.
Having a realistic idea of your financial means is crucial before buying a house. Buying a house that is outside your means is dangerous and can have a devastating effect on your credit rating and your future real estate purchases. Also, having a general idea of your means can help narrow down your best options within your price range without spoiling you with choices outside of your budget. Typically, your housing budget would fall somewhere between 25% to 30you’re your gross income, but this can vary due to your other obligations. Being realistic in the beginning stages of your search is the first step to happiness in your new home. And it might surprise you to learn that you don’t have to wait until you save 20% to buy a home today.
2) Get preapproved for a loan.
Determining your budget is an important first step for yourself, but getting preapproved for a loan is the first actual step in the purchasing process. The bank you get your financing through is going to look over your investments, debts, savings, and equity to determine how much you can afford and how much they can safely lend you based on your income and collateral. From there you have a jumping off point to begin earnestly considering your choices. The best pre approval to obtain is a credit pre-approval from a reputable lender, I can help you with this critical step if you don’t have someone you know and trust.
3.5) Find a good real estate agent.
Purchasing through an agent is a crucial necessity considering the complexity of modern real estate and the scope of some markets, having an expert along for negotiations and navigating the technical hazards can be beneficial for your peace of mind. However, your choice of whom hire is strictly up to you, but you want an experienced negotiator, someone with a trusted reputation and agency.
3) Search the local market for the right house.
With the first two steps under your belt, searching the market is the next stop in the purchasing process. Looking at the homes in or around your price range, you are in a position to see what is available and what properties match your personal needs and offer the most possibilities. Here is where you agent can earn his/her keep. They can provide the latest updated information and know the issue of dealing with local governmental agencies to make your offer and closing move with perfect timing and without a hiccup. You can’t search Zillow or Trulia and believe you have seen what is available, unfortunately many listings are incorrect, not updated and some were sold months ago but the agent never removed them. It is important to know that Zillow and Trulia don’t require and can’t enforce that the information be correct or updated.
4) Get an Inspection of the property.
Once you find a home that fits your criteria it is wise to have it inspected to see that it is structurally sound and marketed honestly by the seller or listing agent. If all is well you can go forward with your offer based on the asking price. However, if the house is lacking in one or more areas this can be brought up in negotiations to either bring the price down or allow you to explore other homes before being locked down. This single step can save you heartache and money down the road. And it helps that your agent knows exactly what to be looking for in your local market or subdivision.
5) Make an initial offer.
After deciding on a budget, getting loan preapproval, finding a home, and having it inspected you are now in a position to evaluate its worth and make an offer on the house based on your finances and research. This step is critical to have your agent prepare a market analysis in your behalf and the reason you don’t want to have the listing agent (who is responsible to the seller) negotiating for you, that agent is working for the seller, not you!
6) Negotiate a final price.
It is up to the seller if they will accept your initial offer or propose a counteroffer. Either way, after an initial offer is submitted a dialogue begins between the buyer and seller, and at that point negotiations either culminate in a sale or result in a return to step #3.
7) Finalize your loan.
If negotiations finalize amicably between both parties the next step is finalizing the loan from the bank to complete the sale. Working with the right loan officer can make this happen, just keep in mind that in today’s lending environment written documentation is King and some may be requested more than once, be patient and thorough and it moves quickly.
8) Put up a down payment.
Down payments usually are usually between 10-20% of the agreed upon price and are due upon the signing of the paperwork. The money goes into escrow until the deal finalizes and ownership changes hands. Putting up the right amount of money at the right time is important in order to remove stress and risk. I can help you so it is at the closing when it is necessary and with a minimum of risk.
9) Move in. I have hundreds of tips for you so this can be painless and an easy move.
All that’s left at this point is to sigh a breath of relief, roll up your sleeves, move into your new house, and enjoy your new life as a homeowner.
Visit my website https://stephanieknightrealtor.com