Buying a house is a goal for many of us who want our own property and to invest in something that will appreciate in value over time. However, the process of buying a home has its challenges. In this article, you will learn the basics of how to buy a house in six efficient steps.
How to Buy a House With a Buyer’s Agent
Buying a house is one of the largest transactions that you’ll ever make. A buyer’s agent helps you decide on an offer price and negotiates on your behalf based on the findings in the home inspection report.
The seller’s agent represents the current owner of the home. Without a buyer’s agent, you’re working at a disadvantage as a first-time homebuyer. The first step should be finding a buyer’s agent to work with through the process.
Determining Your Needs Versus Wants
You may need to live a certain distance from work but maybe you want granite countertops. Before you step foot inside of a prospective home, make a list of needs versus wants.
There are things that you can change, such as decor and paint colors, versus other permanent features, like the distance from town or the layout of the home. For example, neighborhood quality and location should be more important than the color of the house.
Working With a Loan Officer
Talk to your bank to see if you can get pre-approval for a loan. The bank will approve you for a certain amount based on your credit score, income, and other factors.
The pre-approval amount is sometimes more than you can actually afford. Think about all your other expenses and financial goals when you decide how large of a loan to take. You don’t need to accept the maximum amount. Your mortgage payment shouldn’t be more than one-third of your monthly income.
Making an Offer When Buying a House
In most cases, bidding on a home usually involves matching the seller’s price. This amount is based on the property’s amenities, age, and location. The only time when a lower number is acceptable is when there’s an issue with the property, such as roof damage or if the property has been on the market for a long time. You can negotiate a lower cost to compensate for the repairs that you’ll face before moving in.
How to Buy a House: Patience
There are thousands of homes on the market at any given time. Remind yourself about this fact as you tour different homes. Becoming attached to one property that has an expensive price tag or serious repair issues isn’t smart. Be patient and wait for the right property for your budget and needs.
Order a Home Inspection
Always order a home inspection before closing on the property. Home inspection professionals inspect the condition of all of the major appliances, systems, and components of the home. You’ll get a better idea of what kind of maintenance and repair costs you’ll be facing if you decide to move forward with the purchase.
Do your own research while you’re looking for a home. Learn about payments, offers, and negotiations. As you gain knowledge on the subject, you’ll be better equipped to buy a house without any major challenges.