The journey of buying your own home can be both exciting and daunting. There are various salient issues that you need to address when buying your home. Most first time home buyers and even old timers make some avoidable mistakes that turn out to be unnecessarily harmful in the long run.
Let us help you in your home buying journey so that you may have a smooth ride and void these simple mistakes.
- Review your Finances – Have a look at your credit report, most of us never do. This is absolutely necessary as you want to purchase your home because it may affect the approval of your mortgage, interest rate and other financial issues in the buying process.
- Decide on a Budget – You need to have a budget. It is not financially wise to spend more than you can afford. Decide on a budget based on your monthly income and expenditure. Also consider your wants and needs in a house when doing your budgeting including location and type of house you want. A quick study of the real estate market is not a bad idea.
- Save for your Down payment – If you find it difficult to save, then consider opening an automatic savings account because you must have enough cash to support your down payment, unless you have some sort of assistance. Most times, a down payment of 20% is required by lenders.
- Pre-Qualified or Pre-Approval – You need to learn how much loan you can get before you commence the house buying. Through interviews on the buyer’s finances, the lender can make an estimate of how much the buyer can afford. This determines if you are pre-qualified. On the hand, with pre-approval, the lender will look at your down payment, check your credit report and finances, then determine a pre-approved amount.
- Seek a Good Real Estate Agent – You should not rely on the seller’s real estate agent, choose your own agent. The seller’s agent will work in favor of the buyer and not you. Your agent will assist you to secure the best deal because he/she has better knowledge of the real estate market.
- Search and visit Suitable properties – You probably have a location in mind and the type of home you desire to own, narrow it down and visit the ideal ones with the assistance of your real estate agent. Take your time to make the best choice.
- Make Your Offer – Having located the property of your choice, your agent will assist you to make the right offer based on the market prices within the area.
- Review the Contract and Secure the Mortgage. Before signing the contract, be sure to review it with your agent to ensure that everything is in order. Avoid the mistake of rushing to sign without reviewing the contents of the contract. It is then time to secure the mortgage. Without pre-qualification or pre-approval, securing the mortgage may take longer.
- Inspection – This is another step that many people ignore. It is absolutely necessary that you invite experienced inspectors to check the entire building so you don’t end up with avoidable expenses.
- Close – Make sure at this point that every document and deal is in order. Ask for clarification if there are any grey areas. Then go ahead to sign the papers and enjoy your new home.