It’s exciting to buy a new home. By preparing ahead, you can keep your stress minimal and the excitement high. Before you begin looking through listings, take time to learn more about the six steps of buying a house.
What are the steps to buying a house?
Step One – Saving Money
Most people don’t have enough cash on hand to buy a home. For this reason, a home mortgage loan is needed to cover the cost associated with buying a home. While this is expected and common, the down payment and closing costs require cash. You typically need 20 percent of the selling price for the down payment. Unless an arrangement is made with the seller, the closing costs run between 2-8 percent of the selling price.
Step Two – Credit Report
A home mortgage lender needs to see your credit report. If you suspect that your credit report is less that excellent, get copies of your credit report from Equifax, Transunion, and Experian. You are allowed to get a free report annually from each agency thanks to The Fair Credit Reporting Act. If you find any errors while checking your report, you should immediately take care of those. You don’t want a couple of unpaid bills to postpone your ability to buy a new home.
Step Three – Real Estate Agent
When you place what you know about real estate up against the knowledge a real estate agent possesses, it’s easy to see the balance shift toward the real estate agent. Experience and training make them rich in knowledge. They understand the steps to buying a house. A real estate agent will act on your behalf through the home buying process and take care of the essential paperwork. If your offer has competition, they jump in and negotiate with skills they’ve polished through years of use.
Step Four – Mortgage Loan Pre-Approval
Start the application for a home mortgage loan early in the process. Most people don’t have a clear or accurate idea of how much house they can afford. This approval gives you a targeted price range that will save you time when searching for homes. It can be frustrating to find a perfect home out of your price range, so don’t let that happen to you. In addition to narrowing down your search criteria when it comes to price, a pre-approval letter shows a seller that you are serious about purchasing a new home.
Step Five – Negotiable List
Before you begin searching you will need to answer some questions. Do you want a condominium or a single family home? Is it important that your new home be close to work? There are must-have items you want in a home, and you should make a list of those things. Make a mark next to items on that list that are non-negotiable. Share that list with your real estate agent. It will save you time and help your real estate agent choose the right homes for you to view.
Step Six – Making the Offer
When you find the right home, you will know! After you find the perfect home, it’s time to make an offer. You want to make an offer that will attract the attention of the seller, and your real estate agent will have valuable advice for you to do so. As previously stated, there may be multiple offers that arrive alongside your offer. Be patient, and remain calm throughout the process. You can trust that your real estate agent will negotiate on your behalf. After your offer is accepted, it will be time for the appraisal and inspection. Before you know it will be closing day, and you will be receiving the keys to your new home.
Your real estate agent is the best source of information about the local community and real estate topics. Give the Barnes Team a call today at 818-239-1275 to learn more about local areas, discuss selling a house, or tour available homes for sale.
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