Thinking of buying your first home or one that better suits you and your family? Here are three important steps in the home-buying process you don’t want to skip:
- Get a mortgage pre-approval. Nearly nine out of every 10 buyers finance their home purchase. Knowing how much home you can afford is a crucial first step before you start shopping for a home. A mortgage professional can provide you with this information before you begin your search. You’ll also find out how much cash you’ll need to have at closing. Your downpayment depends on the type of mortgage you are able to get. There are many different types of loans available, and each one has its own set of benefits and drawbacks. Do you need a fixed-rate loan or an adjustable-rate loan? A conventional loan or a government-backed loan? Once you know what kind of loan you need, you can start comparing different products.
- Consult a real estate professional. The home-buying journey can be a long and complicated process, but working with a real estate agent can make it much easier. A good agent will help you find the right home, negotiate the best price, and handle all of the paperwork. They will also be able to answer any questions you have along the way. When you are ready to start looking for a home, your agent will be there to help you every step of the way. They will show you homes that fit your budget and needs, and help you negotiate a fair price. Once you have an offer on a home, your agent will handle all of the paperwork and coordinate with the seller’s agent to make sure everything goes smoothly.
- Get a home inspection. A pre-purchase home inspection is a vital part of the home-buying process. Make your offer contingent upon one. Without a home inspection, you’re depending only on the home seller to let you know about any defects or issues. They may not realize some of their home’s issues. No one wants to find out that a roof needs to be replaced or a furnace is faulty after they close on a property. A home inspection is not going to find every single thing that may need to be replaced or repaired on a home, but it will give you a better idea of whether you face costly home repair bills down the line.
The home-buying journey can be long and complicated, but it doesn’t have to be. By following a few simple steps and getting help from your real estate agent and your lender, you can make the process much easier on yourself.
