Buying a house could be a tough task, especially in the times of uncertainty of the higher price list and low rates, but having proper information and guidance could make it easier.
Here, we have come up with the 12 steps that could make the extensive home buying process much easier for you. Below are the steps that you should follow before taking the decision to buy a dream home for yourself or your loved ones:
1. Re-look your Credentials – Foremost step in the process of buying a home is to make sure that you are in stable financial position to purchase a home. Any money lender, be it a private institution or bank, will certainly check your credit score (preferably of last 2 years) to check your eligibility to borrow money. It’s always better to keep a step ahead and prepare beforehand.
2. Define your budget based on your credentials – Once you check your credit score, you will get to know what amount of loan can get easily approved. Based on the loan approval limit, you can determine your budget and can move ahead.
3. Avail the Pre-Qualified and Pre-Approved loan – In order to get loan, you need to get pre approval of the loan from your lender. Although, getting preapproval would not imply that you have the guarantee to get the loan, but it implies that you have the eligibility to get the loan. Once you get pre-qualified for the loan, the lender will estimate the finances through the information you have provided such as bank statements, financial documents, etc. This process generally starts with answering some questions based on your income, the assets you hold and the liabilities you have. Use our mortgage calculator to estimate the loan amount by clicking on this link https://rajdhawan.com/mortgage-calculator/.
4. A right real-estate agent could easier the process – Guidance and services of a real-estate agent could play a beneficial role in the process of home buying. As they hold good knowledge about the area, you wish to live in, their negotiation skills and understanding of home buying process is highly valuable. Hiring an agent will not cost you much, the agent work in exchange of some commission that is paid by the seller.
5. Better to sign a buyer’s agreement – – It is always recommended to enter into a buyer’s agreement that aims to protect you and your agent in the home buying process. You can sign a buyer’s agreement with your real-estate agent after visiting a few homes.
6. Look for ideal and potential properties – When you have already checked your credentials and hired a real-estate agent, you can take the help of your agent in prioritizing about what your home should look like. You must consider on points such as:
- Location – What kind of location, ambience, and surroundings you prefer.
- Type – Whether you would like a single family home or a multifamily home, etc.,
- Lot – What size of land are you looking for, and what could be the ideal square footage?
- Number of rooms – You must mention how many number of rooms, bathrooms, halls, etc. you looking for.
- Condition of home – Whether you want to renovate the home by yourself or you want it already renovated.
Based on your preferences about home, your real-estate agent will advise you the options accordingly. It is always recommended to do a thorough research about your ideal home beforehand which makes it easier for you to advise your preferences to the agent.
7. Good to go with House Hunting – Once you have decided of your priority for the house and conveyed to your real-estate agent, now it is the time to start house hunting. It might not be possible that you get your perfectly matched dream home, but you should visit the options suggested by the agent if they are somewhat matching with your communicated priorities. It is always better to convey your likes and dislikes very clearly to your agent so that they can suggest you the best that matches your requirements.
8. Put forward an offer to purchase your dream home – Once you are done with the house hunting and have finalized the home of your dreams, it is the time to put forward an offer. Your agent will communicate and put forward a legal contract with the seller. The seller might respond you in any of the below given three ways:
- If your seller ‘accepts the offer’, both parties can move on to the next step.
- If your seller ‘rejects the offer’, you might make another offer or can look for other suitable options.
- The seller might come back to you with a counter offer with different prices or different terms and conditions. It’s time for you to accept it, reject it or put forward a counter offer.
Negotiations of prices of a home might go long once you submit the offer. Let your real-estate agent handle all the negotiations. You can anytime take step back if you don’t like the agreement.
9. Time for Home Inspection – Once both the parties have finalized the offer and have agreed upon the terms and conditions, it is now the time to move ahead with the inspection of the house. Your real-estate agent will organize the inspection accordingly that will be conducted in next few days post acceptance of the offer. By doing home inspection, you will determine which part of the home needs major or minor repair or if there is any other required work that need attention.
10. Get the home appraised before buying – You must do home appraisal to determine the current value of the house you are going to buy. Typically, the lenders requires home appraisal in order to determine the current market value of the home and provide the loan accordingly. You might face challenges if the value of the loan you are applying is higher than the market value of the home you are going to buy.
11. Complete the Paperwork – – There is a lot of documentation and paperwork involved in buying a home. Your agent will help in coordinating with all paperwork and make sure the authenticity of information that seller and buyer has provided to each other. You will be required to sign the final papers in lawyer’s office on closing day along with the down payment and any additional cost if applicable.
12. Closing of House Sale – This is the final step in the process of home buying. Once all the paperwork is done, returned to the lender and check delivered to the seller, the title of the home will be transferred from seller to you and you can move in to your new home now. During closing, it is must for both the parties to be present at the lawyer’s office while signing the papers
We understand buying a home is such a hassle, but these 12 steps will surely guide you in making a better decision and minimize the complexities involves in buying a home. You are always free to contact us for help and guidance you need in home buying decision. We are here to help you! For more information, click on our website https://rajdhawan.com/