Congratulations, you have decided to buy a house.
But before you put money down on your dream home, you should take into consideration specific steps to buying a house. There are a variety of items to consider, from financing and mortgage pre-approval, to meeting real estate agents and Realtors and visiting open houses.
Then there is the offer, the home inspection process and the closing to navigate before you finally move in.
How to Buy a House: Financials and Pre-Approval
Do you know what your FICO score is? It is a reflection of your financial health and can impact interest rates greatly.
A FICO score can range from 300 to 850, with higher scores signifying better credit. If you don’t know your score, you can find it by pulling a credit report.
Once you know your score and have reviewed your credit report, look to take care of any negative credit issues impacting your score. Before you start looking at houses, make sure you have talked to lenders to be pre-approved for what you can afford and make sure you have saved money for the required down payment.
How to Buy a House: Real Estate Agents and Open Houses
The process of buying a house can be much smoother with the help of a real estate agent or Realtor.
When you pick an agent, ask about his or her rates as well as experience. You will want to make sure to communicate clearly to your agent what you specifically want and don’t want in a home.
This may require to you think about what you want now and in the future. Along with viewing homes that meet your price range and specifications, be willing to visit open houses. If you are interested in a specific home, consider visiting it at different times during the day to get a true sense of the neighborhood.
How to Buy a House: The Offer and Home Inspection
When you are ready to make an offer, work with your Realtor and take into consideration your needs and the seller’s needs. The seller can then respond to your offer in one of three ways — accept your offer as-is, make a counteroffer or reject.
If the sale is moving forward, don’t overlook the important home inspection. During this step, a home inspector looks at specific items inside and outside the house to make sure you don’t have any surprises in terms of costly repairs or safety concerns. Depending on the outcome of the inspection, further price negotiations could occur.
How to Buy a House: The Closing
The closing process of buying a house happens where you sign documents related to purchasing your new home. Your real estate agent and mortgage company will help you finalize the arrangements for closing. While the documents may be long, make sure you are fully aware of what you are signing for the paperwork.
When the keys are finally turned over to you, you will realize that these steps helped you not only on how to buy a house but how to buy a home — a home where you will create memories and traditions.
