Buying a house is an important milestone, for first-time home buyers, the process may be intimidating and exciting. So it’s no surprise that the decision to buy a house may be more overwhelming than ever before. In this blog, we’ll discuss each step involved in buying a house.
What do you need to buy a house?
Before looking for a perfect home ensure you have what you need,
- A strong credit score
- Money saved for a down payment and closing costs
- Preapproval for a mortgage loan
- A qualified real estate agent
- Also, look for,
- Necessary documentation
A clear, comprehensive understanding of what goes into purchasing a house.
The Home Buying Process In simple steps
1. Check your credit score
A first-time home buyer should have a decent credit score. A credit score is just a three-digit number that represents a numerical summary of your credit report and a detailed document outlining it. A lender will check your score and decide whether to sanction a loan or not and also fixes the interest rates. If there are late payments on your credit cards the lender will lower your loan amount and increase the interest rate.
2. Get pre approved for a mortgage
Seeking pre-approval from a lender for a home loan is important. They will check your financial background and determine whether to loan you money. Mortgage pre-approval is not the same as mortgage pre-qualification. Getting pre-approved requires a lot of paperwork.
3. Find a real estate agent
A professional real estate agent is needed to help you buy the worthy house, negotiate a great deal, and explain all the nooks and corners of the property.
4. Shop for a home
As a home buyer, you may have gone through thousands of real estate listings and then ask your agent to meet the seller. You must decide whether to buy a new home or just fix the upper.
5. Make an offer
Have you found your dream home? without any delay, make an offer to the seller.
6. Get a home inspection
It’s very important to do before buying any property. This lets you know the defects and problems to be fixed by the seller before selling the home. A professional realtor by your side will be helpful in identifying such issues and correcting it.
7. Get a home appraisal
Though the pre-approval for your home loan is got, your lender will conduct a home appraisal to check whether it’s a good investment.
8. Head to closing
Closing means getting the keys to your dream home officially. Closing costs can be sizable, averaging from 2% to 7% of the home price.
If you plan to buy a new house there are a lot of things to consider. Start by checking your credit and then decide how much you can afford.