Buying your dream home can be an exciting and emotional process. For one, it makes you anxious thinking about the possible consequences of getting a new house, especially if you are not financially stable.
However, doing thorough research about the homebuying process before starting your home search will help you feel more at ease. It will help you weigh the pros and cons while empowering you to make decisions that are the best for your family and wallet.
Your research should include the things you must consider, such as the timing (determine if now is a good time to invest for a home) and the owner (who should buy the house in your family?). If it is you, try evaluating your financial capability and overall readiness to venture into this new undertaking.
To help you further with your homebuying journey, here are seven practical steps to guide you.
Understand why you want to buy a house
Remember that purchasing a home is a significant decision and should not be taken lightly. Any harsh and impulse decisions can make your family suffer, so while everything is still a plan, make sure that you have a firm reason why you want to get a house in the first place. Otherwise, you could end up regretting your decision.
Check your credit standing
Even if you have enough savings to initially fund your dream home, having an alternative fund source can help. It is one reason why you should check your credit standing. Most financial institutions use your credit score to determine the available financing options for you. In this case, the better your credit history, the more chances you will have the best opportunity of secured financing with the best terms and rates.
Determine your budget
Always set a realistic account for your new home. It will help you know what you can afford and the other expenses you can incur throughout the process. Never go beyond what you can pay. It will just give you a problem a headache later.
Calculate and save for a downpayment
Research the downpayment requirements for the loan you want. This way, you know exactly how much you need. You can also look into your local or state first-time homebuyer assistance program to help with your downpayment.
Shop for a mortgage
Try getting a preapproved mortgage. It is helpful when making an offer on the house. You can start by contacting at least three lenders or a mortgage broker to increase your chances of getting a low-interest rate.
Get professional help from a real estate agent
An experienced real estate agent can help you save time and money. Through his or her expertise, you can find your dream home. At the same time, they can negotiate with the seller on your behalf. First, contact several real estate agents and ask for a consultation. Look at the catalogs or online listings with compelling real estate images. Most of the time, these agents find the best real estate photo editor to retouch their property’s images. Through this, you can take a look at realistic photos that are aesthetically enticing.
Do a final walk-through and secure the paperwork closure
A final walk-through is your last chance to view the property before it becomes yours. This is the only instance left to ask questions and address any outstanding issues before the house becomes entirely under your name. After this, your lender should issue the “clear to close” status on your loan. Usually, within three business days before your closing date, the lender will provide a closing disclosure that outlines all of the loan details, such as the monthly payment, loan type, term, interest rate, annual percentage rate, and loan fees.
These are only helpful tips you can follow if you are planning to buy a house this 2020. Stay optimistic, and you will soon have those dream house keys, too!