Buying a home can be a complicated task if you don't know where to start.
This will help walk you through the basics of home buying so you get a solid understanding of what it takes to complete the purchase process.
What Can You Realistically Afford?
Before you start visiting every open house that you see and looking to seek out a designated moving company like North American Van Lines, you'll want to get a firm grasp on how much you're willing to spend on your future home. Furthermore, this ties in with your mortgage commitment - as well as how much the lender is willing to offer you.
Seek out a realistic budget that you can work with. Or, you can contact a financial professional and have him or her crunch some numbers for you. By doing so, you'll have a true estimate of what you can afford and what's way beyond your price range.
Plenty of buyers overstep their financial boundaries and find themselves in a predicament down the line. Remember to consider every factor, as a home will undoubtedly be the biggest purchase that you'll make in your lifetime.
Once you have a good understanding of your budget, it's time to think about the down payment that you're going to make. Today's home buyers are saving at least 20% (minimum) for the down payment and another 3 to 5% for closing costs - which is a whopping amount if you think about it. However, by taking this route, you'll avoid having to purchase private mortgage insurance - we'll talk more about insurance in a bit.
Take a Look At Your Mortgage Options
If you're for the entirety of your home upfront in cash, you'll likely be pulling out a mortgage.
Starting this process involves finding a trustworthy mortgage lender that's easy to communicate with. They will provide you with detailed information and options and can answer every one of your questions in detail - which I assume that if you're a first-time home buyer that you'll have plenty.
To break this down in a simple manner, there are two primary options that you'll be choosing from. The first is known as a fixed-rate mortgage, which keeps your approved rate steady throughout the duration of your entire loan. The second is an adjustable-rate mortgage, which tends to fluctuate based on the market. Both have their pros and cons, so speak with your mortgage lender about the what's best for you and your financial situation.
Leave No "Stone" Unturned
You've finally reached the point where you get to shop around for homes.But wait, before you start submitting offers, one thing you might want to consider is conducting a home inspection.
An inexpensive service that measures the overall quality of the home, conducting an inspection can be worth its weight in gold. While you might visualize a gorgeous interior, do you really know what's going on behind-the-scenes? There could be potential pipe issues, weak support beams, and even termite damage that could endanger you and your family.
You can start this process by speaking with a certified home inspector. Someone that's well-respected within the industry and has performed countless inspections much to the content of the buyers. After all, you're investing a significant sum of money into a home, you might as well avoid getting a lemon for the price that you're going to pay.
Submit Your Offer
If everything checks out, submit an offer. Depending on the overall status of the home combined with the knowledge of your real estate agent, you could be getting your home sooner than you think - and at a reasonable rate.
By now, you're probably in the stages of finalizing the paperwork, ripe with the eagerness to move into your brand new home.
The only thing left on your list would be to choose a reputable moving company. And believe me, this is more important than you might think. The wrong company could turn your joyous day into an insufferable nightmare filled with angry back-and-forths between the company along with a load of regret.
Take the time to research the company before you commit to the contract. Experienced businesses can help make the final stages of your move-in process that much easier - not to mention freeing. By taking the time to do some basic research on the Internet, you could be saving time, money, and most importantly, unnecessary stress.