10 Successful Steps To Buying A House
One of the major dreams of most Americans is to get a house where is safe to stay for their family. But sometimes, finding that perfect home you deserve or wish to buy it could be stressful process filled with mix emotions, and this is why it’s important to note those 10 steps in order to buy your dream home. Buying a home always has a process, however this process may be the same, but understanding the steps to buying a house is important if you wish to achieve your goal and the house you desire.
The process involved in buying house is not just about searching for the house in a desired neighborhood, city, or zip code, it is more than that. Firstly, you need to consider the amount of money you have, consider your financing option, then you look for a reputable and trusted real estate agent. Your agent will need to make offers and negotiate with the seller. You will also need time to inspect the neighborhood, the house and the surroundings, and then the house. If everything goes as planned, next steps would be the closing and moving in.
All these processes are vitals and it really takes time. It is important to know that the average duration which the processes involve in buying a house is roughly six (6) months, which include like four and half months to shop for the house and roughly 30-45 days to close when you find the house that fits all your wants and needs, and everything goes as planned. Of course, those are average and estimated times when buying a property, but it may vary greatly based on different factors. For example, if you find the house that is perfect for you and you are familiar with the neighborhood and so on, in 1 week, then the only time will take is to close on the loan.
Before you attempt to buy a new house you need to consider certain things, and you need to check how much you can afford to buy the house. Consider if you can afford the neighborhood where your desired house is, and if the neighborhood has the amenities you need. You also need to check if the value of house in that neighborhood is increasing or decreasing. The right real estate agent would conduct the research and will make sure you get the house you love keeping in mind a sound investment. These are things you need to consider and find answers to before you can start searching for a house and settle. We put together 10 steps to take in order to achieve efficient, stress free, and successful home buying journey.
The following are the 10 steps to buying a house
- Check Your Credit score. Amongst other factors, the credit score is one of the most important number that a lender uses to assist them to know how likely someone can repay if given a home loan. The credit score and credit report show if you will be given a loan or not and also with either high interest rate or at low rate. Credit score is built on credit history or credit report. A credit report is a statement which extracts data from credit reporting agencies which is used to determine your creditworthiness. This is referred to as the FICO score. People with high credit score have access to low interest rate on home loans and people with low credit score may not be given a loan or they may get a loan but with higher interest rate. Though this depends on what the lenders accept. So if you wish to get loan to buy a house be more concerned about your credit score and how you can increase it so as to allow you to qualify for loan with low interest rate. In a course of 30 years, half percentage of interest can make a difference. Assuming you are getting a 30 years Mortgage.
- Determine the amount of house which you can afford. The money you have determine the type of goods you purchase, this is why it’s important to know the amount you have or which the lender decides to lend you before proceeding to buying house. What you need to consider here are your income, your debt and the amount projected for down payment. How much you can afford to buy a house determines the type of house you will buy, the amount you have determines the feature of your future home, the location, the neighborhood, outdoor space, amenities number of bathrooms and bedrooms, commute to work time etc.
Get an experienced estate agent
When getting an agent to help you throughout the process of buying the house, make sure you get a reputable one which have the experience and can guide you through it effectively. Getting a real estate agent is cost effective for buyers because it is the seller that pays the agent’s commission, so why not get a reputable one. The real estate agent will assist you in the following areas.
Specific neighborhood search:
Experienced agent will have knowledge of all local neighborhoods, and will conduct the necessary research to determine if the area of your choice is a sound investment for your money, the home values are increasing or decreasing, the surroundings, and so on. The agent will present all the facts to you and the final decision is yours, but it is always good to make decisions when you have all the facts.
Negotiations: After you do the search and find the house you like, here it comes the offer. It is where an experienced agent will play a huge role, especially when there are multiple offers on the same house. The right agent will present the offer to the seller and conduct the negotiations on your behalf. An agent can make the difference between you getting the house you been looking for or not depending on their vast experience. There are more goes behind the seen then you might think when it comes to negotiations, and presenting the offer, and getting the offer accepted. In a rare occasion the home buyers lost getting a home they loved due to agent’s lack of experience. Though it does not happen often, but it occasionally occurs.
Additionally: Your real estate agent will conduct a research to determine if the asking price is the right home value, and advice you accordingly. When it comes to selling homes, the sellers may list the home for a higher price then market value with intention to lower the price later. In order to know the right market value, is to do the research and use data available.
Repairs And Upgrades: Regardless of the house’s condition, and style, you may want to do some upgrades, or the house may need some repairs. The last thing you want is after you been looking for a home for a while, went through the whole process, is when you move in is to start fixing the house. That does not sound like fun. You want to settle in and start creating memories for you and your family for years to come. An experienced agent will negotiate the upgrades and repairs for you so in closing, you enjoy and settle in and relax.
- Getting loan pre-approval
Loan pre-approval means that a lender has accepted to lend you an amount of money to buy your home, and this gives verdict on the budget you have about buying your new home. The lender calculate the overall financial health by accessing and reviewing the income, current rent, debt, asset and record of bankruptcies in order to get your pre-approval. Getting a pre-approval letter also shows the seller that you are a serious buyer.
- Commence home search. Using Reacasa.com to search for home online is really a good way to start searching for home in your desired neighborhood and you can also filter to your preferences. As you begin the search, your choices of house may change as you may need to give up some house in order to acquire the ones in your desired area or zip code.
- Make an offer. After getting your desired house, the next move is to make an offer to buy the house. This should be based on the comparative market analysis (CMA) which is prepared by your agent; this comprised the calculated house market value which is based on the amount of recent purchase of house in the area. The lender will not provide a loan that exceed the home value.
- Schedule an inspection. The next thing is to schedule the inspection of the house you desire to buy so as to ensure that there’s no underlying issue with the house. Your agent will recommend a reputable home inspector or you can get one on Reacasa.com. After the inspection, if there’s any issue with the house you can discuss it with your agent and there will be renegotiation where the seller will be asked to fix any issue about the house.
- Secure the financing. Since you’ve gotten your pre-approval, you need to submit your mortgage application after which if it’s successful, you will receive your “clear to close” meaning that your lender has approved your purchase. If you haven’t done so, you can start the pre-approval process here
- Purchase home owner insurance policy. The next step is to get homeowners insurance policy as it’s important before closing. You can shop to get policy that you desired and if you own a house already you can ask your agent to assist you in opening a new insurance policy.
- Close and move
You’re expected to sign all the required paperwork in the company, and also check the house if it’s still in the same condition when the offer was made, you also need to check if the issues talked about with the seller has been fixed before you finally close and move in to your new home.
Reacasa Advantage. On Reacasa.com we have made it easy for you to find the right agent and start the process from the beginning; from searching for homes, to hiring agent, an getting your finance in order. Everything you need to buy or sell a property, all free and in one place.