You found yourself in a situation of being able or forced to purchase a real estate. It doesn’t matter if it is your first home, or you are exceeding your property. What does matter is- to be careful, thoughtful and wise. You don’t rush in such an investment. The most important thing is to consider different options. Compare them. And, in the end, decide what is the right solution for you. Of course, unless you are a real estate agent, we suggest you consult a professional for this. Professionals have the know-how required for real estate investment. So, here we are to give you an instruction step by step to buying a home. Reading it, you will learn what is important, prior to sealing the deal for the ideal home.
Step by step to buying a home instruction
The first step to buying a home- check on your financials
The first thing you should know is how much money you have for investing in a residential real estate. That money could be the savings, the money you inherited, or the money from the credit. In case you use the third option for financing your home, read what you should do:
- Strengthen your creditability– The stronger your financial position is, the lower interest rates you’ll get. And the difference of just 0.25% in interest rates might mean tens of thousands of dollars more or less to pay. A pretty important thing, isn’t it? So do your homework- pay off the credit cards and solve every issue that might make your credit score weaker. After that, get a copy of your credit report. You’ll use that to go to lenders and get a loan.
Go to the lenders. See the terms you can get. Choose the best option, and get a pre-approved loan or credit. If you come to a home seller with a pre-approved, a home seller shall regard you as a serious buyer, and therefore you might lower the price, having the money at your disposal. So getting a money in advance is maybe the most important step to buying a home. At least the most important step prior to hiring a realtor.
- If you already own the real estate, shop for your mortgage prior to taking any step to buying a home! You can learn how much money you can borrow. And we suggest you borrow it prior to visiting the home sellers. This is another way of financing the new home, but the logic is the same- home sellers like buyers who already have the money.
- The last step to buying a home, when it comes to your financials is- hire a lawyer. There is a serious amount of money on the table, don’t get tricked or robbed because of your lack of information
Decide what area you’d like to live in, and go visit it
Do this prior to considering the shop. You want to be sure what is the neighbourhood like around your new home. Also, you want to check on what you can get there. In terms of quality of homes for sale. Therefore, we suggest you visit some of the open homes. ACheck the average. What is the average number of rooms, how big are the kitchens, are there terraces etc. That way you’ll have a good information if that is what you’re really looking for, or you should maybe look for another neighbourhood/area.
Hire a real estate agent- Don’t underestimate this step to buying a home
If you are not a real estate agent, or you are not from that sphere of business- hire a realtor. This will help you achieve your goals when it comes to purchasing a real estate. Because the real estate agent has contacts with home sellers and has many options for different prices for home buyers than they could find on their own. So the bottom line- Real estate agents connect those who buy home with those who want to sell. It is their job and they get paid for that.
So they search for good homes all the time and therefore have the better information on that subject than you could have. After you hired a real estate agent, think about what you want from a home. Make a list of the most important things, so you could present them to the realtor. Don’t be shy or bored to get detailed on what you want from your home. You’re still buying a home. It is important to get what you want, and you hire a realtor to find you just the home you want!
The critical step to buying a home- making an offer
Check on several things when it comes to deciding how big offer you’re about to make for a specific home:
- Check on the life situation of the owner– if he is desperately looking for money, you may certainly lower the price, and probably for an important sum.
- See if the home seller has already purchased the next home. If not, then you should also be able to reduce the price, being that the seller is looking for a money to buy the next home.
- Is the home you’re considering to buy on the market for a long time? If the answer is confirmative, that should also be the factor for asking the price to be lower.
- Compare the home you want to buy to other homes near you might consider buying. Comment on what the other homes have and that particular doesn’t have and start reducing the price, several % for each lack.
- Examine the home, consider bringing an expert with you, and find out what needs to be repaired and renovated. Calculate those expenses, and ask the seller to lower the price for that amount.
- If you fell in love with the home the first time you saw it, and there are other bidders, be prepared to offer the higher price to secure it.
Sealing the deal, actual buying a home
After you agreed to the terms with the home seller, there are just several things left before you enter the home as an owner. We shall mention what to pay attention to:
- Ask how much of a downpayment you need to offer up front. If you don’t have enough money, plan on how to get it. As we said, it is better to have the money prepared prior to visiting the houses you want to buy
- Make a good inspection of the home. And bring the experts for everything. The cost will be several hundreds of dollars, but you’ll have the exact information of what is the quality of everything in and around the home. You don’t want to put your signature and pull out the money, and then find out that there are several problems with thousands of dollars needed to be repaired.
- Close the deal- This is definitely the last step to buying a home. Here the buyer and the seller put a signature on the agreement, stating that the home is now in your hands!