6 Simple Steps To Home Buying

Dated: 09/02/2015

Views: 639

The home buying process can appear daunting, especially for first-time buyers. From finding your financial footing to applying for a loan and choosing the perfect property, a qualified real estate agent who understands the entire process is essential. They can help ease worries, add needed security to the transaction, and get you on track for becoming a successful homeowner. But if there were just six things any real estate professional could teach you before buying, it would be the six simple steps to home buying.

Step #1: Getting Ready for Home Ownership

Most homeowners research the living daylights out of buying their first home. They harvest the Internet for well-researched articles on what to look for in a property, the kind of mortgage to apply for, programs available for first-time buyers, what to ask sellers, how to negotiate price, and more. They bombard Google with questions and begin to learn more about how to research then they ever wanted to know. But getting ready for home ownership requires more than research; it demands the right frame of mind.

Lesson 1: You Don’t Have to Buy

If you currently rent, the rising cost of living is vivid. You see a trend emerging: it’s more cost effective to buy than rent. Whether your goal is to save money, gain the security of ownership, or better control your fate, you see the importance of investing in your own home. But before you jump headfirst into the market, understand that you don’t have to buy.

The real estate market is constantly changing. It ping pongs between being in favor of buyers and in favor of sellers. Just because you find the perfect house today doesn’t mean you have to buy it today. Likewise, it doesn’t mean it’s the only perfect house on the market. Do not rush into a deal simply because you think it’s what you have to do.

Lesson 2: Plan to Settle In

Buying a house is one of the biggest financial undertakings you will ever embark on. If you do buy, plan on owning for several years. House jumping is for renters, not for homeowners. The financial resources invested in buying a house far outweigh those of moving from rental to rental.

Lesson 3: Complete the Home Buying Check List

You can’t buy a house without resources. It’s your job to build a good credit history, and then use that history to gain a mortgage pre-approval. Find out what types of mortgage loans you can qualify for, and smartly choose to apply for the ones best suited to your needs. Save up for a down payment capable of covering 10 to 20 percent of property value.

Step #2: Find a Real Estate Professional

When a personal specializes in something people consider commonplace, it’s hard to convince them of their importance. Real estate professionals fall into this category.

You can buy or sell a house on your own, but it doesn’t mean it’s the best choice. It’s much like having the transmission of your vehicle replaced; you can let your neighbor who tinkers do the deed, but it isn’t necessarily a good choice when you could have a qualified, specialized mechanic handle the repair.

Seek out a professional in real estate. Interview them. Explain your needs, lay out your expectations, and nurture a business relationship. You can only get out what you put in to the relationship, and you will need this specialist in your court throughout the buying process.

Step #3: Find the Perfect Property

Visual appeal isn’t everything. As you shop for a house, remember that appearances can be deceiving. You must determine what is important to you, such as neighborhood amenities, nearby schools, access to public transportation, neighborhood walkability, community amenities, etc.

You must zero in on the areas and neighborhoods that appeal the most to your needs and desires, and then you must do your research. For example, if you’re looking for a home in Virginia Beach, you might want to research neighborhoods like Eagles Nest, Hidden Shores, and Long Creek Cove among others.

Step #4: Finance the Deal

You should apply for and receive a pre-approved mortgage before shopping for a home. It allows for a faster sale, shows your seriousness as a buyer, and also lets you know exactly how much the bank is willing to finance.

Once you’ve decided on a property, the lender or an attorney will run a title search to ensure there are no clouds on the title. Before finalizing the deal, ensure you understand all of the attached financial terms. If needed, ask the lender for clarification. It’s never too late to back out if a term doesn’t meet your needs.

Step #5: Make the Offer

All of the research you’re conducting will be invaluable when making an offer, right alongside the priceless experience of a qualified real estate agent. You’ll need to ensure the property has been inspected by a licensed home inspector. A title check will be needed, and if everything looks good, you’ll be ready to make a competitive bid.

When making an offer, be ready for a counter-offer. You want the best possible deal, but the buyer wants the maximum in profit. Be ready to compromise, but do so smartly. Remember, you don’t have to buy.

In the meantime, keep your credit score steady and in-check. Do not purchase any big-ticket items until long after closing. Only one offer will result in a sale. Don’t be afraid to move on to better prospects if yours isn’t it.

Step #6: Closing and Starting a New Life

Once you’ve closed, your big purchase will require care. Protect it by obtaining insurance. Weatherproof your new home to set the stage for good care and maintenance. Maintain files of all contracts, insurance documents, warranties, etc. in a safe and secure location.

If you’re happy with your purchase, don’t forget to recommend your real estate professional. You can sing their praises to family and friends, but with just a few minutes of your time you can write a positive review online or tell your social media followers about your experience. Your agent won’t forget your kindness, and they’ll be ready to assist if and when you embark on another real estate transaction.

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