How to Buy a Home
What does it take to buy a house? Maybe you’re a first-time home buyer, or it’s been years since you last went through this process. Either way, it’s good to understand the basic home-buying steps before worrying about the details. Today, we will look at the basic steps to buy a house.
Home-buying can be divided into three sections: pre-searching, searching, and post-offer acceptance. These sections can then be further divided into several actionable steps. Before you begin searching, you should know your budget, find your ideal loan type, and find a real estate agent. During the home-searching process, you need to adjust your need and want lists, look at homes, and put in offers on properties you’re interested in. After a seller accepts your home offer, you’ll need to write checks, get inspections done, negotiate repairs and credits, and get to the closing table. If you feel overwhelmed by this list, don’t worry. Let’s look at what each step entails.
Before you do anything else, you’ll need to set a budget. This budget will help you know what kind of home you can afford. Your budget should include the actual price of the house, the extra costs of having a mortgage, and any costs associated with owning a home. While figuring out your budget, you’ll most likely realize that you will need a loan. There are several types of loans, and your unique situation will determine which loan will work best for you. Do your research and see what housing programs are available where you live. Finally, you’ll need to find a real estate agent to guide you through the rest of the process. Use referrals and research reputable agents in your area to find an agent that works for you.
Your real estate agent will guide you through the rest of the home-buying process, starting with finding homes that closely match your needs and wants lists. As you look at homes, you may realize that you had too many expectations for your budget or want something different from what you initially envisioned. Either way, your needs and especially your wants may adjust during this process, and it’s your agent's job to help you find properties that will work well for you. After finding a home you like, discuss putting in an offer with your agent. Depending on the market, you may need to put in offers on multiple properties before one is accepted, but don’t lose heart. After your offer is accepted, that’s when the real fun begins.
The last step in buying a home involves several necessary steps. After getting your offer accepted, you’ll need to write due diligence and escrow checks and start the due diligence process. Home inspections will be done during this time, which will commonly uncover many problems. It’s now time to begin negotiating who will pay for what repairs. How the market is behaving will influence how many repairs you can get the seller to pay for. Be reasonable, trust your agent's advice, and know when the house may no longer be worth your effort.
It’s now time for the final step. You’ve made it to the closing table. At this point, your money is due, and the keys are handed over. Your journey to homeownership is complete, and it’s time to enjoy your new space. Buying a home can be a lengthy process, but choosing the right real estate agent ahead of time will make it much more manageable. Know that there are a lot of steps you need to take to get your new home, but know that you can take each step one at a time.
