There is nothing like being too prepared to buy a home. That’s especially if you are doing it for the very first time. You wouldn’t find anything bigger to buy for your entire lifetime, anyway. So, don’t rush blindly into buying a new home. The following ten steps should guide you through the home buying process without much of a hassle:
Do you really need to buy a home?
Which is cheaper for you? Buying a home or renting one? While home buying might be cheaper than renting by over 35 percent, you still have to consider other possible merits and demerits. Once you have weighed your options, decide whether you still need to buy a home.
Learn the home buying process
Sure you want to buy a home? Learn how the process works. Know what is it you need to do first. It is important to involve an accomplished real estate agent. In the end, you will have to realize that your home is a necessity, not an investment. Although you will have to put some trust in your agent, take control of the process.
Get as much information as you can about the home
So you have found a home that interests you. Why don’t you dig for a lot of information about it? Your agent should be able to tell you the length of time the house has been up for sale. If it has stayed for months on end, it might just be overpriced. Before you make a deposit of the price, ask for the tax, insurance, and utility bills. Make sure you also find out information on the neighborhood in which the home is located. 5 Tips for Remodelling an Old Bathroom
Avoid trying to sell and buy at the same time
It is very difficult for you to buy and sell a home, all at the same time. You may want to sell first or buy first. Sell first, if you will need the money to pay for your new home. If that isn’t an issue, consider taking out a mortgage using your employment credentials. All you need is have the right paperwork in place and you are good to go.
Saving for the down payment
It is not in all situations that you will be required to make a down payment to buy a home. However, a 20 percent down payment can help you qualify for a bigger loan, smaller repayments, and cheaper rates. Begin to save for the down payment and the closing costs as soon as you possibly can.
Get your finances in proper shape
If you are going for a mortgage, you want to get interest-rates that are as lower as possible. Make sure you always pay your bills on time, follow up on your credit status, and avoid buying anything major on credit. Try to find out if you will be able to afford to pay the regular deposits.
Buy a cheaper house than you can afford
If you over-invest in a house, you are likely to end up poorer than before. To overcome that risk, consider buying a much cheaper home. You don’t want to end up home poor and dependent on state financial assistance.
As you go through these key home buying steps, make sure you take your time. After all, there’s no reason to rush into a deal.