It’s no secret that the home buying process can be a little daunting. It spans several steps, and each one has its own set of pitfalls to avoid, but it doesn’t have to be difficult.
In this blog post, we’ll break down the five main steps in the home buying process for you – from determining what kind of home you want all the way through to closing on your new place.
How to Buy a Home in 5 Simple Steps
- Determine What You Want
When considering a new home, you may want to consider what is important in your life. Is it the location, the size of the house, and land within an acreage that interests you most, or does commuting from work matter more than anything else when choosing a place to live?
The best way was to determine which type and size of home suits your needs is by considering these factors:
- How much space do you need?
- How many people plan on living there at any given time
- If pets come into play, can they coexist happily within that specific arrangement without causing too many problems
- What special features do you want; a swimming pool, a basketball court?
- Set a Budget and Get Your Finances in Order
When buying a home, it is extremely important to set a budget. When you know how much money can fit within your monthly paycheck and savings account for an upcoming purchase, then you will be better equipped with knowledge of what type of home will suit your needs and price range.
You may not have cash at hand, but that’s okay. A good option might be applying for a mortgage to buy your dream home. All you need is to find the right lender and get pre-approved for financing. Most lenders will require you to make a 20% deposit into the purchase and have a credit score of 620+. Read the mortgage terms and know how much money is coming out each month before signing anything.
- Hire a Real Estate Agent and Shop for Homes
For many, the process of buying a home is exhausting and time-consuming. The truth is that there are so many steps in this procedure, and if you try to do it all by yourself, then the chances are high that you’ll end up with a bad deal or something unworthy.
The best way to tackle such a complicated feat as buying a house? Hiring an expert!
A real estate agent knows where great deals can be found (and which neighborhoods aren’t worth living near). They’re also experts when it comes down to negotiating prices or making sure everything gets completed smoothly before the closing day arrives.
- Make an Offer
A standard practice when buying property is making an offer in writing with a 20% deposit that shows your serious intent on purchasing the house. You may also hire a lawyer to review any contracts you sign for peace of mind as well.
- Inspect and Close
Who wants to buy a house with problems? Thankfully, you can be prepared for the worst by doing thorough inspections before taking over your new home. This includes checking for leaks in the roof and any damage from pesky insects like termites or other pests that might want to make their homes there too.
You will also need to inspect radon gas levels, building quality, oil tanks, etc., which are all potential issues one could encounter when buying property.
One of the crucial steps to buying land from owner is to ensure there’s a clear title. A typical home buyer would likely be interested in the type and size of the house they are purchasing but what often goes overlooked is the fact that the house sits on a piece of land.
Remember that while size and type are important, it doesn’t matter how big or fancy your dream home might be if you have liens on the property.
When buying land, it’s important to inspect for environmental hazards. Conduct a soil test to determine if there are any hazardous materials or anything that could be harmful during construction and later use of the property.
Closing on a home is very exciting. Your final walkthrough should get you ready for the big day by assuring that everything is in order and has been fixed (if needed). You have two responsibilities.
- Signing Legal Documents:
You’ll want to take care of any last-minute details before taking possession by reviewing and signing off on everything (like disclosures). This includes both agreements between you and the seller.
Remember that these are legally binding contracts, so make sure they’re in order for what exactly was agreed upon beforehand. No one wants an oversight or mistake hanging over their head – literally.
- Paying Closing Costs
Closing costs are fees and expenses you pay when you close on your house, beyond the down payment. These can run 3 to 5 percent of the loan amount or more, including title insurance, attorney fees for closing documents and appraisals, as well as property taxes that will be due in full at this time.