Buying a house for the first time? Don’t panic because this is one of your biggest financial steps and you need to keep your cool. Easier said than done right? Buying a house is not that complicated if you have the right people by your side. Think of the preparation process as making a team that will guide you throughout the steps. You need to prepare yourself with all the possibilities to make sure that your first experience is a blessing and ends up with a profitable deal.
Following are some basic steps that will guide you in buying a house:
Step #1: Are You Ready?
Buying a house is a big deal and by a “big deal”, we mean it involves a lot of expenses.
Do you have a stable job?
Do you have people depending on you?
How many family members do you have?
Buying a house is quite different from renting. The utility bills increase, there is property tax and then the added maintenance. These are just some of the costs that you will have to deal with on a permanent basis. This is why it is necessary to create an emergency fund that will help you in time of need. Plus, you need to look at the long term plan and see how the house will benefit you in the future.
Step #2: Go Loan Shopping and Get Pre-Approved
The first person you need on your team is a mortgage broker. Getting pre-approved gives you the opportunity to close the deal then and there. A mortgage broker’s job is to bring you the best market rates that will fall under your budget. This way, if next your real estate agent shows you a house that is within your price range, you can buy it immediately.
Step #3: Wow the Seller
Sellers only talk one language – money. To make sure that they don’t consider the other buyer’s offer, you need to play a few tricks, one of which includes putting up a heavy down payment. You might have to stick your hand into your emergency fund but once you get the mortgage, the payments will come easily.
Step #4: Search for a Good Realtor
Now that you are pre-approved, it’s time to add the most important member in the team – a realtor. A realtor helps you set realistic expectations and gives suggestions based on your future plans. Not only a realtor will help you find a better home, he will also negotiate on your behalf with terms that will make you happy.
Step #5: Don’t Forget the Home Inspection
One thing that most buyers are confused with is an appraisal and a home inspection. An appraisal allows you to know the true value of the house in accordance to the market. The mortgage loan is based on this appraisal value.
As for a home inspection, it allows you to find out whether the condition of the house matches the appraisal or not. Nobody likes a house that requires a long haul of repairs and you shouldn’t settle for less. Some common problems in fixer-upper houses are termites, bad roof, mould and a shaky foundation. While small plumbing problems and light fixtures can be fixed easily, such big problems must be avoided. The money spent on these repairs could have been used to renovate your house.
Getting a good realtor on your team is the most important step because they have better knowledge about the real estate market than you. With a team of competent real estate experts on board, you will find that going down these steps is much easier. Visit SteveBhalla.com if you are looking to buy a house with help from expert real estate agents in the market.