Buying a house doesn’t have to be a complicated process. At Gardner Moving, we have put together the basics steps that you will need to take to purchase your new home. Before you jump into the process fueled by your excitement, it is important to understand the steps you should take to help make the home buying process easier.
While searching for homes is exciting, it’s important to start by focusing on your down payment before you begin browsing. Without a strong foundation with your finances, your plans for a home purchase will likely crumble.
For your down payment, you will need to plan and prepare to meet your savings goals. For your down payment, it is recommended that homebuyers save 10% for the down payment or 20% to help you avoid private mortgage insurance rates. The PMI will be added to your monthly costs and will not go toward paying off your mortgage.
You also need to save about 3% of the home’s prices for the closing costs and prepaids. Keep in mind that this fee can vary depending on how high the taxes are in your area. With prepaids, you are covering the insurance items and property taxes.
Another cost to consider is your moving expenses. To budget for these costs, you can call local moving companies for quotes prior to purchasing your home. This will give you a good idea of how much money you need to set aside for moving services, so you are prepared for your move. It is also important to budget for home improvements such as painting, new carpet, new appliances, and furniture.
If you plan to pay for your new home with a home mortgage loan, you will need to get preapproved. To do this, you will work with a lender who will verify your financial information and then send your loan for preliminary underwriting. You will then receive a preapproval letter showing how much money you are preapproved for. This also helps demonstrate that you are serious about purchasing a home.
While you can begin your home search online, you should rely on the expertise of a real estate agent when it comes time to prepare for purchasing. When you work with a real estate agent, you will get valuable insight and assistance into the home-buying process.
Some real estate agents may be able to help you find a home before it reaches the market and can also help you during negotiations for your offer to ensure you do not pay more than you have to.
While you may know a lot of real estate agents in your local area, it is crucial to remember that they do not bring the same insights and skills to the job. You want to look for a real estate agent that has experience helping a home buyer like you, such as first-time homebuyers, etc. You also want to find one that has superb communication skills to ensure that you will remain on the same page throughout the process.
It is also important to find a real estate agent that has worked for at least two years as a full-time agent and has a long list of homes sold each year. You also want to find someone who has experience in the market you are trying to buy-in.
When looking for a home, there are two things you cannot skimp on, the location and layout of the home. These are two things that you cannot change, so if you find a home you like but you do not like the location or the floorplan, it is best to move on.
Look at the values of other homes in the area you are searching in. You want to see if the value of the homes is rising or declining. You also want to pay attention to whether businesses are thriving or closing. It’s likely that you don’t want to move to an area that is on the decline.
Take a look at the school districts. Whether you have children or not, the school district in the area can be a major factor for buyers when you choose to sell your home.
You also want to look beyond the surface of the home. You may not like the bright paint in the kitchen or the way the bedroom was carpeted, but these are easy fixes that should not be deciding factors in whether you purchase the home or not.
So, you have found the right home! Now it is time to submit your offer. You will work with your real estate to submit the best offer. The purchase agreement will include the following details:
Before you purchase the home, you can have it inspected to ensure there are no expensive repairs or structural issues. It is crucial to have a home inspection performed to ensure you are getting what you pay for. By having an inspection done, if there are major issues found, you can have them fixed by the seller, have the price reduced, or you can choose to cancel the sale.
For those getting a home loan, you will be required to get an appraisal.
This process evaluates the value of the property and protects the buyer from paying more than the home is worth. You will also have to get final approval for your mortgage, where the lender will evaluate the details of your finances.
Try to avoid any changes such as new credit cards or a change in employment during this approval process.
Now that you’ve completed all the previous steps, it’s time to close on your new home! Before you can start moving in, you will need to review your closing documents and pay for your closing costs, prorated taxes, homeowners insurance, and homeowner’s association fees if your neighborhood has one.
Once you’ve signed all the paperwork and paid the closing costs, the home will be yours!
To help make your move even easier, contact Gardener Moving for a quote on our professional moving services! Our team of experienced movers will handle your items with care and efficiency for a smooth and easy move. You can also read our guide for first-time homebuyers for more information on purchasing your home.