Understanding how to find and finance the perfect home for you!
Buying a house requires a lot of time and effort, but these 10 steps can help make the home buying process manageable and help you make the best decisions possible.
1: Start Your Research Early
As soon as you can, start reading Web sites, newspapers, and magazines that have real estate listings. Make a note of homes you are interested in and see how long they stay on the market. Also, note any changes in asking prices. This will give you a sense of the housing trends in specific areas.
2: Determine How Much House You Can Afford
Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyers plan to make a 20% down payment and have a moderate amount of other debt.
But you should make this determination based on your own financial situation. Use our Affordability Calculator to see how much house you can afford.
3: Get Prequalified and Preapproved for credit for Your Mortgage.
Before you start looking for a home, you will need to know how much you can spend. The best way to do that is to get prequalified for a mortgage. To get prequalified, you just need to provide some financial information to your mortgage banker, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much we can lend you. This will tell you the price range of the homes you should be looking at. Later, you can get preapproved for credit, which involves providing your financial documents (W-2 statements, pay-check stubs, bank account statements, etc.) so your lender can verify your financial status and credit.
4: Find the Right Real Estate Agent
Real estate agents are important partners when you are buying or selling a home. Real estate agents can provide you with helpful information on homes and neighbourhoods that is not easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it does not cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.
5: Shop for Your Home and Make an Offer
Start touring homes in your price range. It might be helpful to take notes on all the homes you visit. You will see a lot of houses! It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home. Consult To The Galaxy Developers.