Snagging the home of your dreams is a thrilling experience. As a game-changing stage in one’s life, a home purchase requires careful planning, patience, and an informed decision; unless you want to be stuck in a crummy house.
As a home buyer, ‘striking the iron when it’s hot’ may not always be the appropriate buying principle, unless you’re completely sure that you’re getting the best deal. To help you out, here are the steps that every home buyer has to take to breeze through the process and become aware of what to expect in every turn.
- Determine How Much You Can Buy (or Borrow)
If you can’t pay for your dream home upfront, the best option is to look for a lending agency and ask how much you’re qualified to borrow. A pre-approval for a housing loan gives you an idea about your loan amount and the chances of being approved for a mortgage.
Knowing how much you can borrow allows you to determine whether you can afford your dream home or need more time to save up.
- Find Out How Much Your Home Is Worth
The amount in which you can sell your current property is an important consideration in your home buying journey. In most cases, the down payment for your new home is taken from the proceeds of your current property plus your savings.
To increase your property valuation, consider making some renovations. Fortunately, finding a contractor online is simple. If you which to rehab your kitchen, for instance, looking for a kitchen company near me can be easily done online.
After finding out how much equity you can afford, you may begin your house-hunting process.
- Be Clear with Your Dream Home Must-haves
If you haven’t already decided yet, look for your dream home based on the available funds and the ideal location for you or your family. Consider factors such as your workplace, access to essential services, such as schools, hospitals, and stores, as well as your ideal neighborhood.
Also, consider the type of home you wish to have, depending on your needs or family size. Choose from among the various property types such as single-family residences, condominiums, townhomes, among others.
Your real estate agent can also help you find and screen a few choices. Consider buying a dream home that won’t break the bank, and continue saving after buying a new home.
- Choose The Right Real Estate Agent
After identifying your ideal home, it’s time to choose a real estate agent to come up with a few properties to choose from, based on your preferences. Choosing the right agent may be done both online and offline–check a few websites and ask your family members and friends for referrals.
Real estate agents have wide access to property listings through the Multiple Listing Service (MLS), which is a comprehensive database of properties being sold in a specific area.
- Start Narrowing Down Your Choices
After taking into consideration your dream home must-haves, your agent will present you with choices and set you for house tours. This is perhaps the only exciting part of your home purchasing journey since you’ll get to visit a few houses and check.
While inside the home, take note of the things you’d want to change if you decide to buy the property. Check out the home’s layout and see how you can liven up the living room and other parts of the house.
Concerned about the neighborhood? Try going around the community and observe the area’s overall vibe.
6. Make An Offer To Buy Your Dream Home
Once you’ve zeroed in on the property of your dreams, get ready to make an offer. Your agent will present your offer to sellers via a purchase agreement. The home seller can either accept, reject, or come up with a counteroffer.
At this stage, your agent and the seller’s agent will be in contact for negotiations and counteroffers, keeping their respective clients updated.
- Close The Mortgage
You’re only one step closer to getting your dream home. At this stage, the home buyer will submit the closing disclosure document to the lender, who’ll review and check that all documents are in order.
A mortgage attorney’s presence will be required on the scheduled signing of the closing documents for notarization. After all of the documents are gathered, the lender will again review the papers before releasing the funds for your dream home.
Buying your dream home takes a whole lot of money and time. By following these nine tips and identifying your priorities, you can find the right home to settle into.
However, don’t forget to look at the bigger picture when it comes to your finances, being that your regular monthly expenses will be compounded by your dream house payments.