Ready to take the leap into homeownership? Purchasing a home can feel overwhelming, but it doesn’t have to be. In this blog post, we’ll walk you through the five steps of buying a house so you can confidently make informed decisions. We understand how stressful buying a new home can be, so let’s get started and make this process as easy and rewarding as possible!
Determine your budget and what you can afford
Before you start your home-search journey, it’s crucial to crunch the numbers and get a clear understanding of what’s financially feasible for you. By reviewing all of your financial obligations, such as bills, debt, and savings – then running the numbers through a mortgage calculator – will give an estimated cost on just how much house is within reach! Once you’ve crunched the numbers, it’s time to meet with a lender who can help you determine which loan would be best for you. Lenders can discuss interest rates and offer you a prequalification letter which indicates the amount your lender is willing to give you.
2. Research/Gather your information
Once you’ve done the number crunching, it’s time to create a list of your wants and needs for your future home. It’s best to research neighborhoods, check out school districts, see how close stores are and HOA fees, find out how “heavy” traffic is, and more. Having a clear list of your needs and wants will help you and your realtor when it comes to finding homes to show you.
3. Hire a realtor
It’s time to take the next step and find your dream home! A realtor can help you with every aspect of buying a property, from finding properties that meet all your needs and wants to guiding you through some of the trickier parts, such as negotiating an offer. With their expertise in this field, they’ll make sure it’s as stress-free experience for you too!
4. Lock in your mortgage/closing
After you have made an offer on a home and the offer is accepted, it is time to finalize your mortgage to fulfill the purchase contract. Typical things move fast here, so taking care of this step is essential. Your lender will send you an estimate including interest rate, monthly payments, and closing cost. To move forward, your assets and income must be verified again with extensive documentation to make sure you can afford the loan. Once this process is complete, you can close, where you’ll typically pay 2-5 % of the home price. Once the loan closes and the funds are dispersed to the seller, you will receive the keys to your new home!
5. Move In
All the hard work is done, and it is officially time to move in and enjoy your new home!
The process of purchasing a home doesn’t have to be daunting. By following these five steps and tips, you will be well on your way to becoming a homeowner. Remember to stay within your budget, research neighborhoods, get pre-approved for a mortgage, find the right real estate agent, and make an offer. Once you go through with the purchase, you can start settling into your home and decorating to your taste and style!