Owning a home is a huge milestone that everyone would like to achieve. Though buying a new property can be tricky, Covenant Properties can make your home buying process easier. You may want to learn more about Covenant Properties before you start looking for a suitable home. Buying and financing a house needs a lot of effort and time. However, the following steps will help you efficiently manage the home buying process and make the best possible decision.
Start Researching Early
If you plan on buying a house soon, you should start reading magazines, newspapers, and websites with real estate listings. Pay attention to how long the kind of houses you are interested in buying stay on the market. A change in asking prices will give you an idea of a specific area’s housing trends.
Determine How Much You Can Spend On A New House
If you plan on making a 20% down payment while having a moderate debt amount, then look for a house that does not cost you more than 3-5 times your annual household income. You should consider your financial situation before making any purchase.
Get Prequalified For Mortgage
A mortgage broker will require your financial information, such as the investments and savings you have and your income. After reviewing this information, the bank will tell you the amount they can lend to you. This will help you determine how much you can pay for a new house.
Find An Agent
Real estate agents can offer you helpful information on neighborhoods and schools that are not readily available to the public. Their experience in handling the house buying process, familiarity with the neighborhood you are planning on living in, and negotiating skills can be extremely valuable.
However, while house-hunting, you should check the following details before you make any decision:
- Run the shower to test the plumbing; note how long you need to wait till you get hot water and the power of the water pressure.
- Turn the switches off and on to test the electrical system.
- Open and close doors and windows to check if they work properly or not.
You must also evaluate the neighborhood to find the answers to the following questions:
- Are the other houses in the neighborhood well maintained?
- Does the block get a lot of traffic?
- Is there street parking available for your visitors and family?
- Is the house located close to places of interest like parks, restaurants, public transportation, schools, and shopping centers?
Once the seller accepts your offer, you should get the house professionally inspected to see whether anything requires fixing or not. If the inspection reveals considerable damage, you can withdraw or renegotiate your offer without penalty. Both the home seller and buyer usually receive a copy of the inspection’s findings. You may even ask the seller to repair anything on their property before you close the deal.
Select Your Loan
A mortgage banker can offer you a competitively priced loan program and exceptional customer service. You may also ask them questions regarding the purchase of the house. A responsive lender will simplify the buying process for you.
The Remaining Steps
An appraiser, arranged by your lender, will provide you with an independent value estimate of the house you are purchasing. Subsequently, the lender will also help you complete the paperwork and ensure that the person selling you the house is its rightful owner. At closing, you need to sign the loan documents and other necessary paperwork to complete your purchase. After the lender gets back the paperwork, it will take them a few days to fund the loan. You can move into the new house as soon as the home seller gets the check.
Buying a home could be a major turning point in your life. Your home offers you space that is completely yours; it is the place where you and your family will make new memories. Since buying a home is a huge decision, you should never rush and make mistakes. Also, you will be limiting your home search or may overpay for a property if you keep looking for perfection. Do not lengthen the home search more than necessary.