Step #1 Before you become a homeowner, you need to decide if you an afford to buy a home. Although a home is a solid investment, you must be both financially and emotionally ready. I hope this 10 Step Guide To Buying A House helps you get ready for your first home. Here are some questions to consider before when buying your first home:
- The Ultimate Guide for First Time Homebuyers
- Do I have a reliable source of income?
- Can I afford the mortgage?
- Do I have money left over for closing cost?
- Do I have good habit of paying my bills on time?
- Do I file an income tax return with the IRS each year?
- Is my debt ratio manageable?
- Do I have enough money save up for a downpayment?
- Do I have a saving/checking account established with a financial institution?
- Are all my regular financial obligations accounted for in my total debt?
- Have I been employed continuously for the last 2 years?
- Do I have money save up for moving expenses?
- Do I have time to take care of a house?
- If I have experienced financial difficulties in the past, can I prove that it due to events beyond my control?
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- First Time Home Buyers Assistance
- A Checklist For First-Time Homebuyers
Perhaps you’re ready to become a first-time home buyer. Read more if you’re ready to become a homeowner…
Step #2 The next step in your purchase of a home is finding a realtor. Why not hire a person with more education and experience than you? Realtors can provide local community information on utilities, zoning, schools, and more.
- Ethical Consideration
- Pricing Expertise
- Requesting Repairs
- Finding Available Homes
- Tackling The Paperwork
- Unemotional Negotiation
- Code Enterprise
- Avoiding Closing Problems
- Education & Experience
- Neighborhood Knowledge
- Professional Networking
- Price Guidance
- Market Condition Information
- Handling Volumes of Paperwork
- Answer Questions After Closing
- Develop Relationships For Future Business
Step # 3 Get A Mortgage Pre-Approval
Before you can get serious about buying a home, you need to get pre-approval for a mortgage. Learn what you need to speed up the approval process. The first step to buying a house is getting pre-approved.
A mortgage pre-qualifications can be useful as an estimate of how much you can afford to spend on your home, but a pre-approval is much more valuable because this means the lender has actually checked your credit and verified your documentation to approve a specific loan amount. Learn more on how to get a pre-approval letter.
Step #4 Look At Homes
There are many factors to consider when buying a house for the first time. Here are several things to consider when choosing a home to buy. If you’re house hunting, these factors will important when choosing a home to move into.
- Search for neighborhood information online
- 10 Things Every New Homebuyer Needs To Know
- How to buy your first time home?
- Check the crime report
- Check for local amenities
- Visit the home at different times of the day
- Test your commute
- Schedule a home inspection
- Talk to sellers
- Ask about taxes, home owner associations dues, insurance, and utility bill
- Check for neighborhood amenities
- Check the selling prices
- Use mortgage calculator
- Find out what your total housing cost would be
- Find out how much you’ll likely pay in closing costs
- Look at your budget
- Talk to reputable realtors
- Examine your credit
Create a list of:
- Must Have
- Would Like To Have
- Geographic Location
- City VS. Suburbs VS. Rural
- School District
- Proximity To Work
- Who Are Your Potential Neighbors?
Step #6 Get Funding
The next step in the first time home buyers is getting the funds. How’s your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards and installment loans on time.
- What is the interest rates on this mortgage?
- How many discount and origination points will I have to pay?
- What might delay approval of my loan?
- What are the guidelines for this loan?
- What is the minimum down payment require for this loan?
- What are my closing cost?
- Can I get a good faith estimate of all cost?
- Is there a prepayment penalty on this loan?
Step #7 Make An Offer
Have you found the home you want to buy? Follow these easy steps to make your offer stand out:
- Make the sellers like you
- Quick inspections and no repairs needed
- Make non-contigent offers
- Escalate your offer
- Get pre approved for a conventional loan
There are a lot of factors to consider when making an offer on a house.
Step #8 Get Insurance
Property insurance is important, but theres a lot you need to learn in order to get the proper coverage. The second more important investment is homeowners insurance. Make sure to insure your biggest investment.
- Shop around
- Raise your deductible
- Build your home and auto policies from the same insurer
- Improve home security
Step # 9 Closing
Closing on a home can be a joyful or horrific. Whether you’re purchasing your fist home or your fifth, knowing what to expect when you close on your new house can reduce the anxiety that comes with purchasing a property. Read more on everything you need know about closing on your home?
- What to expect
- What you need to do
After you buy a home, many new home owners don’t think about the hidden costs of home ownership or what they will need to buy after closing.
When buying a home you will find that being an informed individual about the home buying process is empowering for you. I hope you enjoy the 10 step guide to buying a house.