Buying a home is very exciting, especially if it's your very first one ever. You already imagine what plants to put in the garden, the theme of each rooms, and you can't wait to cook in your very new and very chic kitchen.
However, the reality is, there are a lot of tedious tasks that need to be taken cared of before you can finally call the property 'yours'.
To guide you, here are eight all-important, no-skip tips for a smooth home buying experience from Realty Times:
Decide and make a wish list
Know what you want. Before you can begin making any step, the most important thing to establish is the kind of property that you are looking for. What is your preferred location, how many rooms, the kind of neighborhood, what specific establishments do you need to be around the vicinity. By having all that fixed in mind, you can focus your efforts toward meeting those goals.
Get preapproved
To be prequalified, the lender will have to look at your personal financial information. Your income, credit scores, revolving debts, obligations such as child support as well as the type of loan you choose will influence how much home you can buy. To determine the monthly cost, the down payment, interest rate, and terms (30-year fixed or an adjustable rate), are to be considered.
Hire a real estate professional
Emphasis on professional, because you do not want a real estate agent who will ask you what to do next instead of telling you the next step. Now, after being preapproved and with a sensible price range, hire an agent who is experienced in the area that you are looking into and the type of house that you are buying. Real estate agents have 'specializations', and you can make the most of their service if you find one who have successfully done deals before with cases similar to yours.
Select the 'right' home
When home buying, some buyers have the tendency to 'like everything' about the property being shown. Don't be that. The right mindset is to think long term. Find a home that will suit your needs, not wants; think years ahead and see if it will still suit the needs of your household. Take into consideration the real features such as floorplan, space, and the potential upkeep. Your biggest mistake will be getting a home that is more than what you need and can comfortably afford.
Make an offer
Offers should reflect current market conditions - a home that has been in the market for quite some time is likely to give in for a price reduction, unlike with those new in the market. Your real estate agent should be able to give you the best advice on how to negotiate. You can keep in mind that the seller is likely to respond on how interested you are with the property than reason why you think it is not worth the asking price.
Get an inspection
A home inspection will tell you of the property's current condition - the age of systems, and the large and small repairs that need to be done. This way, you will know what you have to get fixed as the new owner. Usually, small cosmetic flaws should not be an issue. Instead, focus on the high-cost items like air conditioning and roofing.
Get an appraisal
An appraisal will determine the property's market value to the lender. The appraiser is going to compare similar homes recently sold. If the home doesn't appraise to the purchase price, unless you negotiate with your seller, the bank will refuse the loan. It should appraise to the asking price so the lender can move to the closing.
Go to closing
Once the negotiations are final, parties will meet at the escrow office. This could be a title company, real estate attorney, or other closing agent customary in your area. Paperwork will be signed and the lender pays the seller. When disbursements are completed and agreements finalized, the keys will finally be handed to you and you can finally call the property 'your home'.
