Author: Steve Joe
Are you ready to buy a family home but not sure how to go about it? Let us walk you through the steps involved in purchasing a single-family house.
1. Know your Budget
The first step to buying your family home is figuring out how much you can afford to spend on the house. For many people, purchasing a home requires getting a loan, while some have the cash with them. Nevertheless, it is essential to calculate how much you can afford to spend on the house without affecting your financial life.
2. Secure the financing
Before you start shopping for a house, you should know how much a lender can give you to purchase a house. You may think you can afford a $400,000 home, but your lender may provide only $200,000 based on some factors including; your monthly income, outstanding debt, and other related financial records.
Ensure you get pre-approved for a loan or have the money in cash before you present an offer.
You can search for lenders (local bank, credit union, mortgage banker, or mortgage broker may have different rates) with different mortgage interest rates and fees.
After you have selected a lender, you can be pre-approved for a mortgage. But beware because your loan can be denied if your credit score has been altered or is low.
Therefore, it is recommended that you have a backup plan because qualifying for a loan doesn’t guarantee you will get approved.
3. Find a Reliable Real Estate Agent
Another smart move is finding a real estate agent to guide you in the house buying process.
Here are a few benefits of getting a real estate agent:
- Market insights: The agent can identify new developments, and changes in value, and analyze the overall state of the market.
- Offer Price: Your agent can evaluate the home and determine an initial competitive offer for the house.
- Negotiations: Agents can help you negotiate for lower prices or necessary repairs.
- Experience: An experienced agent can simplify the process and handle the stressful parts like paperwork.
- Local familiarity: Most times, your real estate agent has information like the location of schools, hospitals, and other essential places in the housing area.
4. Search for a Suitable House
You should create a list of features you would like to have in the new home before you start searching. Although, your budget will eventually determine what you can buy.
Below are a few things you may consider when searching for a home or during inspection:
- Number of rooms and bathrooms
- Is there outdoor space?
- Preferred location
- Are pets allowed?
- How close is the house to school or work?
- Layout and other features, etc.
It is best to perform your home search and inspection with a real estate agent or a qualified realtor so that they can guide you throughout the process.
5. Make a Competitive Offer
After finding a suitable house, the next step is to make an offer that can compete with the market trends as well as other people that are interested in the same property.
Your real estate agent can help you decide how much money to offer and negotiate, including other necessary conditions.
6. Close and move
After carefully inspecting the house and being satisfied with all requirements, the final state is where you sign the paperwork and agreements before moving into your new home.
These final stages may include costs like paying for the home to be appraised (mortgage companies need an appraisal to protect their interest in the house).
You may also pay for a title search to ensure nobody else can claim your property. Other closing costs may include taxes, loan origination fees, credit report charges, and title insurance.
Conclusion
Understanding all the steps involved in purchasing a home will ensure a smooth process. So make sure you reread this guide to understand the steps required to buying a single-family home.
