If you’ve decided you’d like to own your own home, there are a few things you can do to make the process easier. From saving for a deposit to the mortgage application process, here’s everything you need to know.
- Evaluate your preferred neighborhood:
Before you begin to house shop, you need to have an idea of what kind of neighborhood you want to live in.Visit the area at different times, including during heavy commute times, weekends and later in the evening. Also, talk with the neighbors in your desired community. What do they like about the area? What do they dislike? Their perspectives may offer greater insight into your desired location.
- Determine your budget
When looking for a new home, make your search more effective by knowing how much home you can afford.Carefully calculate the overall monthly payments. Be sure to include additional costs like property taxes, insurance premiums, homeowners insurance, homeowners’ association dues (if applicable), etc.
- Determine your requirements
You are likely going into the home buying market with an idea as to what you’re looking for. Carefully consider the kind of home you want, and separate the needs from the wants. This will narrow down your search for a more effective home buying process.
- Work with a local agent
Pinpoint the area where you’d most like to own a home, and then connect with a real estate agent who works in that area. Make sure that the agent has worked extensively in that neighborhood and has insights into local matters like taxes, schools, new developments and other issues that may be important in the contract process. Agents who list homes also should have a good understanding of fair market value for the homes you’re considering.
- Get credit report ready
Buying a home may be one of the largest financial decisions you ever make. It is suggested to all first-time investors to get their credit report. Get a copy of your current credit report, identify any discrepancies, and get them fixed if possible before you talk to a lender. It’s an important procedure if you are applying for a house loan.
- Get a Home Inspection
Don’t judge a book by its cover. Same goes for a house. Go inside and look around before making a decision.House inspection is a worthwhile investment for a number of reasons. Negotiate a provision in the contract that states that you have the right to get an inspection by someone of your choosing and to cancel the contract if you are not satisfied with the inspection. Choose a licensed engineer or architect to perform the inspection. Do not rely on the appraisal that is provided by the lender.
- Get a Second (or Third) Opinion
When you’ve fallen in love with a house, it’s easy to overlook things that may not be quite right. That’s why it’s important to bring a family friend or relative along. Since they aren’t buying the property themselves, they’re more likely to see it for what it is. So get a second or third opinion from someone. Different eyes spot different things, and friendly eyes will tell you the problems they see.
