(Newswire.net — October 22, 2019) — Before making a financial decision, it always pays to be familiar with everything about it. If you are planning to buy a house or any property, educating yourself about the ins and outs of the process is essential. So what should you check first? In this post, let’s take a look at what you need to know about buying a house.
What You Need to Know About Buying a House
Buying a home takes preparation and planning. The following tips will help you get the ball rolling in the home buying process.
Become Pre-approved
An important part of the home buying process is being pre-qualified by a lender. This includes knowing your credit score beforehand, as your credit score will affect your loan terms. Other factors to consider when getting pre-approved are your employment and income. Once you have pre-approval, it means you are good to get the loan as long as your credit score and financial situation remains the same or have further improved.
Consider Every Expense
If you think home purchase ends with just paying the mortgage, you are wrong. One mistake home buyers sometimes make is they don’t factor in additional expenses when budgeting what they can afford. A lot of fees come with buying a house, including association fees, insurance, taxes, repairs…the list goes on. While a loan covers the mortgage fees, you need to make sure you have the budget to handle these expenses. If you are not familiar with them, your real estate agent should be able to walk you through such.
Work with a Skilled and Trusted Realtor
When looking for a real estate agent, you must consider their expertise around the home area. Every neighborhood is unique, and remember, you will live in this house and be a part of the community for many years to come. A realtor who knows the area well is also well-aware of many things about the neighborhood, including market home value.
Interview several agents and note their history of sales. Make sure you verify the information included in the listing. Ask about what stays in the home and what will be taken away once it is sold. Sometimes, issues arise when an agent puts something in the listing without checking the facts.
Find a Reputable Home Inspector
A home inspector will see to it that the house does not have issues. You can ask your real estate agent if he knows a trusted one, or you can find an inspector through your friends and relatives. Remember, reputation speaks for itself. If you do not know your agent well, all the more that you need the advice of a reputable home inspector.
An inspector will also come in handy in checking that all the renovations made are up to code. Permits should be checked to make sure something was done right. Purchasing a house without the necessary building permits can cause headaches in the future when you decide to sell the property. If there are no permits, ask the seller to secure them first before sealing the deal.
Check for Issues
A lot of issues may arise from a newly-bought home that may mean money for the owner. The most common problems that you should watch out for are the presence of asbestos, mold, radon, and water-related issues. Have a professional inspect the house for the presence of these problems, as they can be threats to your and your family’s health. Moreover, they can be expensive to repair.
How Long Does it Take to Buy a House?
The home buying process usually takes approximately 6 months to finish, but this can vary from one process to another. On average, shopping for a house takes 20 to 90 days, getting a mortgage offer takes 15 to 30 days, finding a solicitor and signing contracts take 20 to 30 days, and receiving the keys and completing the process take 10 to 30 days.
10 Steps to Successful Home Buying
Step 1: Check your credit score.
Step 2: Figure out your budget.
Step 3: Find a skilled realtor.
Step 4: Get a lender’s pre-approval.
Step 5: Shop for a home.
Step 6: Make an offer.
Step 7: Inspect the house of your choice.
Step 8: Get insurance and install utilities.
Step 9: Seal the deal.
Step 10: Move into your new home.
To Summarize
There are a lot of factors to consider when buying a house. This buying a house checklist is just a simple guide on when to buy a house, what you need to know about buying a house, and things to do after buying a house. The home buying process can be overwhelming, so make sure to plan ahead.