Buying a home is not like purchasing a pair of trousers or a car. It isn’t straightforward and involves risking your money. It can also be very stressful, especially if you are dipping your toes into real estate for the first time. As such, you need to be equipped with the knowledge required to make the transaction smooth and successful. To help you out, here are a few steps that will make the processes simpler and ensure its success.
Assess Your Financial Health
Before going through online listings and selecting an ideal home, you need to perform a serious audit on your finances. The audit is critical as it will tell you whether or not your down payment is enough. It will also indicate if you are capable of paying the mortgage and if you are ready for the expenses of owning a home. When performing your audit, you need to check on the following parameters.
Savings
Before buying a home, you need to ensure that you put away enough money to cover the down payment, closing costs, and renovations if you are planning to customise your new home. If you don’t have any money put aside, begin saving before looking for a home to purchase.
• Check your credit score
To qualify for a home loan, you need to have a good credit score. As such, you need to ensure that you have don’t have unpaid loans and have a history of paying your bills on time. Besides, you need to have a debt-to-income ratio of 43%.
• Evaluate your spending
The purpose of reviewing your spending is to ascertain that you have enough money to allocate to your mortgage payment. As such, follow up on your spending and determine your overall monthly expenses. Compare the result to your monthly income to determine the amount of mortgage you can afford.
If your finances are in order, you may proceed to the next step.
Find Your Ideal Home
There are several options for residential properties. These include duplexes, single-family homes, condos, and townhouses. Your choice depends entirely on your needs and preference. Whichever type you go for, ensure that it has the specific features you need. Keep in mind that a home is perhaps the biggest purchase you’ll ever make. It’s, therefore, essential to ensure that it fits your needs and preferences. If it doesn’t, ensure that it’s as close as possible to allow you to make necessary adjustments in the future.
Get a professional building survey completed
After finding a house that you strongly feel will suit your needs, ensure that a professional survey has been performed. This step is critical in the home buying process and for a good reason. It reveals vital details about the house itself and the land in which it sits.
The building survey will indicate the boundaries of the acreage, the size, and the description of the property. It will also provide a structural overview of the building and reveal major and minor defects if any. Whether the property you are looking to purchase is new or old, having a professional survey will help you determine whether you are getting the full value for your money.
Ideally, the survey should not be performed by your lender or seller. Instead, ensure that it’s performed by a neutral party to get unbiased results.
Get a home appraisal
If your survey indicates that it’s the house is worth purchasing, ensure to get a home appraisal to get an estimate of the value of the house. Ideally, ensure that the appraiser is a third party that’s not associated with the lender or seller. The appraisal will ensure that you pay a fair price of the house you wish to buy.
Closing the deal
Finalising the purchase should only happen if you have everything in order; after completing the above the steps. This step includes signing a lot of paperwork in a couple of hours. It also involves performing a title search to ensure that no other party apart from them seller claims ownership of the property. You will also be required to pay closing fees, which may include title insurance, taxes, and credit report charges.
From ensuring that your finances are to completing a building survey and appraisal, the above steps will ensure that your home buying process is free of issues and successful. These steps will also ensure that you get the ideal house for your family and ensure that you get the best value for your money.
Has worked for many Internet marketing companies over the years, and has contributed to many online publications. If there is a story, he will find it.