Buying a home will be the biggest investment you will ever make. With this, you need to take your time. If you are not familiar with the process, bear in mind that there are many people who can help you along the way.
Home buying process varies from one state to another though but experts simplified it into four basic steps. The four basic steps include:
Hiring an agent
If you want to do the heavy lifting, you can consider attending open houses. If you are not satisfied, you can look online. However, hiring an agent will simplify the process and can help you save time. Here’s why you need to hire an agent:
• The agent will start by sending you listings that fit your parameters directly from the
MLS (Multiple Listing Service). Through this, you will not waste your time looking at active short contingent listings that are still under contract.
• The agent knows new listings that are not even on the market yet. This will give you a head start from the rest of the crowd.
• The agent will take you to tour homes using his/her own car. Basically, you are saving on gas when you consider touring.
• The agent will go the distance to preview the homes for you. This means the agent will spend one or two mornings to preview the listings on your behalf; this is how the agent stays informed about the market.
• The agent can help you spot overpriced listings. He/she can even advise you accordingly.
Finding the right home to buy
Finding a home is physically and emotionally draining. As much as you want to hasten the process, you should start scheduling a maximum of seven homes at a time because seeing more will make you confused.
Most buyers conduct online research first before stepping foot inside the home. There are many factors that you need to consider like the price, accessibility to amenities, and safety of the neighborhood. As a buyer, you should spend an average of 6 to 8 weeks to figure out the right place to live.
Secure a loan
It is not necessary to have a bank mortgage before buying a home but it is prudent to get loan pre-approval in advance. This way, you will know certainly how much home to buy. First-time buyers usually consider FHA (Federal Housing Administration) loans from OnQFinancial. This is because FHA loans offer lower down payment and you can get approval even if you have 580 credit score.
FHA loans are guaranteed by the agency. This means that if you default on your payments, FHA will pay the lender. If you think this is right for you, it is time to talk to a mortgage broker. You can also check with your own bank or credit union. Make sure to compare the mortgage rates before committing.
Conduct a home inspection
You should know your state’s policy about home inspection. There are other states that require a home inspection before making the purchase offer while other states consider a contract contingency. This means you have the right to cancel the contract after the home inspection.