Buying your first home will be one of the most exciting times in your life, but it can also be a very confusing process. The entire home buying process is far more complicated than just searching for the perfect house in your area. These are the five steps that you must follow on the road to buying your first home.
Review Your Financials
Buying a home is a huge investment, so you need to be absolutely sure that you can afford to make such a large purchase. Adding up all of your expected expenses after moving into a new house is the best way to see if you can fit everything in your budget. It is also a good idea to make sure you have extra room in the budget for savings and emergency expenses.
Get Pre-approved for a Mortgage
You need to get pre-approved for a mortgage before shopping for a new home. The concrete budget set by a pre-approved mortgage makes it much easier to narrow down your choices. You also do not have to worry about having your loan application denied after falling in love with a house. Getting multiple mortgage rate quotes from companies like Premium Mortgage Corp will let you get the best deal possible.
Hire an Experienced Realtor
Buying a house by yourself is going to be overwhelming, so you need to hire an experienced realtor. They will be able to handle all of the paperwork, find the best homes in your area and negotiate the purchase price. You do not have to worry about paying an expensive commission because it will be paid by the seller of your new house.
Request Utility Bills on Home
Failing to properly account for utility bills can completely destroy your monthly budget. Every house is different, so you need to request copies of recent utility bills from the utility companies. You do not want to get into a new house only to learn that you can't afford the electricity and heating bills each month.
Don't Forget the Home Inspection
Even if the house looks brand new, you should always request an inspection before finishing all of the paperwork. An inspection will let you know if there are any major problems that need to be addressed. Force the seller to pay for repairs or lower the price if there any problems found in the inspection.
Buying a house is going to be the biggest financial decision of your life, so you need to make sure everything goes smoothly. If you follow these five tips, then you will have nothing to worry about during the home buying process.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. The information in this article is credited to Premium Mortgage Corp.