Homeownership can be an intimidating process. But don’t worry, we’ve got your back! The best way to make sure things go smoothly is to prepare yourself for every step of the process. Here are 9 steps to buying a home.
Hiring someone who has much more knowledge and expertise to help you along the buying journey makes it much easier.
01. Improve your credit score – You’ll want to check your credit score (most larger lenders require a score of 620) and dispute any errors. If possible, pay of any debts. Be sure to make your payments on time; and remember building a credit score takes time.
02. Save up for a down payment – Start saving early, because the larger the down payment, the more competitive buying power you have. It will also affect your long-term finances such as your monthly mortgage payments, and possibly grant you lower interest rates.
03. Calculate your budget – This is where you’ll want to calculate how much you can afford on a home. Think about your income, debt, and expenses. You’ll want to make sure buying a home doesn’t dig you deep into debt, and is a payment you can comfortably afford. Get pre-approved for a mortgage if possible.
04. Hire an agent – Hiring someone who has much more knowledge and expertise to help you along the buying journey makes it much easier. Agents can help you get the best possible mortgage, as well as the perfect home for your needs. And you won’t have to bear the whole process alone.
05. House hunt/ Make an offer – Here’s the fun part; actually looking at homes! Ask for the seller’s disclosure to learn more details on the home, and consider making a list of must-haves or deal-breakers for your new home. When making an offer, be sure to try and negotiate to where both parties are getting a fair deal.
During this final walk-through, you’ll want to check that all the appliances, outlets, plumbing, etc work.
06. Home Appraisal – This is where another pair of eyes decides the home value. The appraisal protects both you, and your lender, from a bad deal. If the appraisal is lower than the price you and the seller agreed on, then you’ll either have to renegotiate or pay the difference.
07. Home inspection – This part is very important because any hidden repairs needs may become uncovered. Be sure to hire a good inspector, and that you attend the inspection. Major fixes might be a deal breaker for you, so you’ll want to discover them before closing on a home.
08. Closing costs – So you’ve decided on a home…don’t forget you’ll be paying closing costs! These are typically 3-6% of the homes purchase price and cover things like inspection fees, land and property transfer fees, etc. The cost also depends on your state, loan type, and lender.
09. The final walk through – During this final walk-through, you’ll want to check that all the appliances, outlets, plumbing, etc work. Re-address any previous issues to ensure they’ve been fixed, and make a list of things you find to report to the seller. Double-check any areas you may have missed before.
Interested in starting the home buying process? Click here to connect with a Sage & Cedar agent and set up a buyer info meeting. Talk about the process, closing costs, lenders, and the current market.
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