Lack of preparation can rob you of the excitement that comes when you are buying a new home. Don’t let this happen to you! Take some time to read up on the steps to buying a house before you start the search for your dream home.
Step One – Save Money
Not many people can afford to put down the cash to purchase a new house. It’s perfectly acceptable to secure a home mortgage loan to make the dream a reality. The mortgage loan will cover the bulk of the cost of the house, but you will still need to have the cash for the down payment. Typical down payments are around twenty percent of the selling price. You’ll need money for closing costs and moving expenses. It’s a good idea to save more money than you think you’ll need during the transaction.
Step Two – Check Credit Reports
Before you visit the mortgage lender, order a copy of your credit report from all three of the major credit reporting agencies. You get a free report each year from TransUnion, Equifax, and Experian due to the Fair Credit Reporting Act. Take advantage of this opportunity to check your reports for errors and delinquent accounts. Take care of anything that needs your attention immediately.
Step Three – Real Estate Agent
You wouldn’t dream of trying to rebuild your car’s transmission unless you happen to be a mechanic. Why would you try to buy a house without the help of someone who is professionally trained and knows the ins and outs of the real estate market? Your real estate agent has the experience, negotiation skills, and knowledge you need to have a successful transaction. When things seem overwhelming, your real estate agent can calm the storms and make things clear.
Step Four – Mortgage Loan Pre-Approval
Don’t start looking for your dream home before you know exactly how much house you can afford. There’s nothing worse than getting your heart broken when you have your sights set on a home that is out of your target price range. Apply for a pre-approval for a home mortgage loan to get your correct price range and prove to sellers that you’re serious about buying a house. This pre-approval can turn the tides in your favor during a bidding war.
Step Five – Wish List
Just as important as knowing your target price range is knowing what you need is a home. Sit down and make a list of all your needs and desires. How many bedrooms do you need? Do you want the house in a particular school district zone? Give each item on your wish list a priority number. Use the priorities you set when it comes time to make compromises. Pass the list to your real estate agent. They can save you time by showing you houses that closely match your criteria.
Step Six – Making the Offer
There’s a good chance that someone else has their eye on your dream home. You want to make an offer that catches the eye of the seller. Sit down with your real estate agent and discuss ways to make your offer more appealing. If you do come up against other buyers, trust your real estate agent to negotiate on your behalf. Once the offer is accepted, you’ll move forward to the appraisal and inspections portion of the process. Closing day is just around the corner, and you’ll pick up the keys to your new home.
Your real estate agent is the best source of information about the local community and real estate topics. Give the Jackie Ruden Realty Team a call today at 435-272-7710 to learn more about local areas, discuss selling a house, or tour available homes for sale.
