Buying Your First Home in 2024
Buying a home is everyone’s dream, and one must fulfill it. However, buying a home is sacred yet intimidating, as it involves emotional, financial, and commitment aspects. It’s also crucial as you will be creating a base, where you will be growing your family, taking a faith leap, and spending retirement days.
Step-by-Step Processes to Get Purchase-Ready
Answer Why You Want to Buy
The buying decision of a home has two essential aspects: why do you want to buy? It involves answering questions like are you financially prepared? What will be the beneficiary buying or renting? Having this clarity will help you with making sound financial decisions that you won’t regret later.
Answer What You Want to Buy
Another question is what you want. What kind of house do you want? What are must-have amenities? What are non-negotiable features? By answering these questions, your searching journey will be eased out! This list will be a prime checklist to select or reject houses you see and wish to schedule appointments for.
What’s Your Credit Score?
Before you make a purchasing decision, consider checking your credit history and score. If there is any deficit, consider making it a surplus and maximizing it. Remember different credit scores will have different impacts on borrowing amounts and interest rates.
Talk to Real Estate Agents
Buying a home involves a lot of steps, procedures, and compliances that one shall adhere to. For stress-free transactions, you can choose the real estate agents who provide listing services, negotiate on your behalf, and take care of legality. Ensure to discuss commission or brokerage beforehand.
Downpayment
The downpayment is a major chunk of the initial liquidity and transaction you make as you need to pay at least 20% in advance. Also consider how much you can get as a loan, which will give you the rough amount you should save to make the down payment.
Create a House Budget
People often forget that buying a home isn’t just about a down payment or a home loan, it also includes expenses like buffer funds, unexpected charges, closing costs, and maintenance expenses. Create a budget that leaves you with an emergency fund as well as a decent living style.
Start Touring Homes
Now, as you have sorted everything, start looking for the homes. You should keep in mind to check the amenities, neighborhoods, and status of the home. Take as many tours as you can, ask questions, and make sure that you have notes about each home, which will ease out the finalization process.
Make an Offer
Once you are clear on which home you want, create an offer package, which includes your offer price, your pre-approval letter, proof of funds for a down payment, and terms or contingencies that you wish to add. Make clear terms for the contingency clauses you include in a contract. Also, you may have a counteroffer from the seller that you can accept, negotiate, or even reject based on your needs.
Go for a Home Inspection
The home inspection is a must-have appointment before you move into the home. The home inspectors are licensed professionals who assure you that the home doesn’t have any hidden or major issues and is in absolutely good condition. Based on this report you can also amend your offer to the seller.
Negotiate with the Seller
When you have the appraiser’s and inspector’s report on hand, you shall consider the negotiation with the seller. Apart from that one must discuss who will take care of the closing costs, repairs, and maintenance costs. Know that problematic conditions like structural damage or improper electrical wiring can affect your loan opportunities, so you better negotiate it well.
Secure Your Finances and Apply for a Loan
Note that the pre-approval is not final sanctioning, when the final loan is approved it depends on various factors such as maintaining your finances, keeping your credit score under check, and paying the loan on time. Make sure that you don’t borrow, open a new credit line, bounce any payment, or default during the loan approval phase.
Do a Final Check-In Before You Move In
Do a final walkthrough with your agent before you move in. During this walk-through, make sure that the inspection checklist and other documents, like repair invoices and receipts, check the condition of the home, and whether the terms and conditions are fulfilled then proceed to move in.
These are some of the tips that you should consider before purchasing a home. Follow it and start your journey to get your first home!