Law

The Home Buying Process: A Step by Step Guide

Did you know that 33 percent of homebuyers in the United States of America are first-time homebuyers? There are many people out there that are looking a buying a home and start a family, but the home buying process can be a bit intimidating when you’re navigating it for the first time. There is a lot more to it than looking at houses for sale and paying money.

Investing in real estate requires patience, work, and research to find your dream home. There are also a number of home buying tips that you should use when you decide that the time is right to start investing in real estate.

The good news is that you’re in the right place for guidance when it comes to dipping your toes into the real estate investing waters. Keep reading this article to learn some helpful home buying tips today!

Check Your Credit Score

The first thing that you need to do is check your credit score when you start looking at houses for sale. Find areas in which you’d like to live and look at the houses for sale in those areas. Once you find some houses that you like you’ll want to get in touch with some lenders and attempt to secure financing for those homes.

It’s much easier to secure funding to buy a home if you have a strong credit score. In order to get a conventional home loan, you’ll need a credit score of 620 or higher. It also plays a big role in determining the interest rate on your mortgage loan.

Determine Your Budget

You also need to have a strong idea of your budget when you start looking into buying a home. You need to do some research and look at your available capital in order to determine how much house you can afford and the mortgage payments you can handle each month.

Most loans for buying a home require you to put 20 percent of the cost of the home down on the loan. If you’re getting a $200,000 home then you’ll need to have $40,000 available to spend on the down payment.

Choose a Lender

Once you have a budget in place you’ll want to start checking with banks and lenders in your area to try to secure financing for real estate investing. You can get loan estimates based on what they’re comfortable lending you when you try to purchase houses for sale. Once you get preapproval you can start putting bids in for the home of your dreams.

Find a Real Estate Agent

A real estate agent is a great tool to have when it comes to investing in real estate. A local real estate agent will have a great idea of the local market and fair pricing on the homes that you’re interested in. They can also help you with checking Property Deed Records at PropertyIQ.

Start Searching for Homes

The next step in the home buying process will have you searching for homes to purchase and move into. You should take time to tour different areas and check out different home styles to find the right fit for you and your family. It’s also wise to think about your commute to and from work and the quality of the schools in the area for your children.

Make an Offer

Now that you’ve found your perfect home you need to submit an offer to purchase it. Have your real estate agent look at similar homes in the area and their values to ensure that you’re making an offer that is fair. If the home doesn’t have a ton of interest then you’ll have a lot of bargaining power to get a good price.

You also need to consider different contingencies with your home offer. Put a contingency in place for the home inspection in case the inspector finds anything wrong with it that will cost big bucks to get fixed.

Schedule the Home Inspection

You’ll need to find a reputable home inspector in your area to hire prior to finalizing the purchase of your new dream home. The home inspection will find areas of the home that need some work or repairs. If the inspector finds areas where major repairs are needed then you can negotiate with the seller to have those fixed before finalizing the home buying process.

Get Homeowners Insurance

Purchasing homeowners insurance is another important step of the home buying process. This insurance works as a safety net for the massive real estate investment that you’re making when buying a home. You’re not required to purchase homeowners insurance but it will give you peace of mind should something major happen to your new home.

Do a Final Walkthrough

You’re getting closer to the end of the home buying process when you schedule the final walkthrough at your new home. Don’t neglect this step even though you’re close to closing on the home. This is your last chance to go through the home and see if there are things that need to get fixed.

Close On Your New Home

The last step of the home buying process is closing on your new home. Review your Closing Disclosure and go over the final terms of purchasing your new home. Your lender should send you the Closing Disclosure at least three days prior to closing on the home.

This is the stage of the process where the title for the home passes from the seller to you. A closing agent will help you through this process and oversee everything to make sure that it’s done right.

Now You Know the Home Buying Process

Navigating the home buying process can seem like trying to get through a massive maze, but the journey is worth it when you decide to try investing in real estate. You’ll be buying a home that you can call your own and start a family in. Make sure that you research the area and find a home in a good school district with a manageable commute.

For more exciting articles on a range of topics, make sure you explore more of our website today!

Related Articles

Back to top button