Buying a new house inarguably brings a wave of excitement in the heart, but it can simultaneously be a daunting and overwhelming task to undergo the steps to buy an immaculate residence for yourself. Here is a list of guidelines to enjoy a smooth road to home-ownership while being aware of any possible challenges that might arise and availing the best, yet affordable deal.
1. Decision to buy a house
Making the purchase decision stands as the most crucial step. Analyzing numerous elements such as your incomes, investments, expenses, and savings, you feel you are in a perfect financial state, and it is the right time to buy a house. You are finally fulfilling one of your long-sought desires to buy a house, giving you a sense of pride and an appreciation in your financial position. Start surveying the market to look for dynamic options.
2. Find a real estate agent
In your search for a house, you need to begin with hiring a real estate professional who will assist you through the entire process, guiding you in the purchase and directing you in fulfilling all the necessary requirements. Remember, you will come across numerous brokers to work with, so it is imperative to carefully assess the agent to ensure that he is the right fit for you.
A good agent not only has profound knowledge of the market landscape but also prioritizes their clients, suggesting the best options within the budget and coordinating and managing the essential tasks on behalf of the clients.
3. Prepare credits for mortgage approval
Allocating a budget for your purchase, and more importantly, sticking to it is essential. Financing your purchase is a critical element to consider. Hence, consultation with a mortgage lender needs to be conducted in advance. Before you head on your hunt, you should know how much you can afford to pay as well as the other costs associated with the purchase including property taxes and insurance fees.
It is therefore important to gain approval for a mortgage so that you can assess your potential to spend. Only when your credit history and financial documents have been verified, you become eligible to obtain a home loan.
4. Begin your search for houses
Entering the marketplace, you'll be bombarded with a myriad of options. At this stage, you need to set your priorities straight, adopting a practical approach, keeping in view your budget constraints. Having an absolute criterion in mind makes shortlisting your alternatives much easier; otherwise, you would be too perplexed by the plethora of choices.
There are numerous aspects that you need to consider, such as the location of the house, the layout, and size of the unit, number of rooms, outdoor space, and the list goes on.
Choose what's the most important for you. For example, if you're looking for a house to live with your family, you might be willing to let go of a media room in the basement, but you cannot compromise on a spacious kitchen with a dining area.
If you're fond of nature, you would definitely want to have access to an open space in your house, be it a vast lawn or simply a small patio. Keep in mind that you're not making a temporary choice, and you will have to cope up with it in the long run.
5. Make an offer for purchase
Now that your quest for an ideal house is over, and you've found the place fulfilling all your criteria, lying within your purchase budget, it is time to make an offer to buy the house. Your estate agent has a pivotal role to play in devising a compelling offer. He will closely analyze properties in the neighborhood, compare prices to make a reasonable offer and then prepare an offer letter.
This would comprise of the price that you're willing to pay as well as the terms of the buyer such as the timings and financial conditions, deposit and transfer fees, all of which need to be carefully reviewed.
6. Negotiate for a reasonable deal
Buying a house is probably one of the greatest investments that you make in your life. In most cases, there is always some room for negotiations, especially if the seller is demanding a relatively higher price. You have considerable chances of winning the deal If your agent is cognizant of the marketplace and can professionally negotiate the terms of the offer with the seller.
7. Detailed inspection of the house
It is crucial to carry out a thorough and diligent inspection of the residence you plan to move to. Search for any potential defects or issues that need to be addressed, which can be as minor as requiring a retouch of paint, or may need significant repairing such as water leakages or construction faults, which need to be made at the seller's expense, or requited in the sale price.
8. Close the deal
Now that you've entered the homestretch, carefully examining the property and determining an affordable price point, it's time to finally close the deal. Be sure to thoroughly review the closing disclosure with your agent to be mindful of mortgage terms, monthly payments, and other miscellaneous charges that need to be paid.
At the closing day, you'll have to pay a cashier's check to pay the amount stated. All the necessary documents are signed by the two parties, and the property is transferred to the buyer.
Once the contract is signed and the dues cleared, you now have ownership of the house! The keys are handed over to the buyer. Though it's a long and grueling process, the efforts are worth to get your hands on to your own house!