Buying a house is an important milestone, but for first-time home buyers who don’t know what to expect, the process is often as intimidating as it is exciting. In these uncertain times of high list prices and low rates, the decision to buy a house may feel even more overwhelming than ever, but we’re here to help.
In this article, we’ll walk you through each of the key steps involved in buying a house, so you know exactly what you’re getting into and how to prepare.
Step 1: Start Your Research Early
As soon as you can, start reading Websites, newspapers, and magazines that have real estate listings. Make a note of particular homes you are interested in and see how long they stay on the market. Also, note any changes in asking prices. This will give you a sense of the housing trends in specific areas.
Step 2: Determine How Much House You Can Afford
Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyers plan to make a 20% down payment and have a moderate amount of other debt. But you should make this determination based on your own financial situation.
Step 3: Get Prequalified and Preapproved for credit for Your Mortgage
Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get prequalified for a mortgage. To get prequalified, you just need to provide some financial information to your mortgage banker, such as your income and the amount of savings and investments you have.
Step 4: Find the Right Real Estate Agent
According to Emilia Flores, the co-founder at UkBadCreditLoans, “real estate agents are important partners when you’re buying or selling a home.” Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable.
Step 5: Shop for Your Home and Make an Offer
Start touring homes in your price range. It might be helpful to take notes (using this helpful checklist) on all the homes you visit. You will see a lot of houses! It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home.
At Elite Tax Success, we can help you through this journey. Call 08 9370 5515 or send an email to firstname.lastname@example.org for enquiry.