The process of buying your first home holds significant weight; it’s a long-term investment that, more often than not, is the single most expensive purchase you’ll make in your entire life. There are quite a few steps to it, with many more factors to consider prior to entering a purchase agreement. Each process can seem quite overwhelming on its own, but Alexander Diaz de Villegas – a career real estate agent based in Homestead, Florida – has a guide to assist the first-time buyer each step of the way, from start to finish.
The process for buying a home starts well before you’ve started searching for a new place to live. The best approach in this stage is a proactive one, specifically with your finances. If you haven’t started saving already, now is the time to begin. You need to consider all of the expenses associated with buying a house, including down payments, utilities, furniture/appliances, relocation fees, and closing costs.
Additionally, Alexander Diaz de Villegas says it’s very important to set aside some of your finances as emergency savings for the first few months after you’ve moved on as a backup plan, in case anything goes wrong.
Check Your Credit
The key to finding success in the home-buying process is to keep yourself informed. Before you do anything else, you have to be knowledgeable about your credit rating, including what to do if it’s not as high as you’d prefer. Alexander Diaz de Villegas states you don’t want to add the debt associated with a house to your current costs if you can’t stay on top of your other debts, and having a good credit rating isn’t just affirmation of your ability to manage your money responsibly, it’s also a way to instill confidence in your mortgage lender.
The next step is to obtain pre-approval for the mortgage in question. Pre-approval is a vital step because it’s a way to tell mortgage lenders that you’re committed to finding a house. During this part of the process, you’ll also have opportunities to shop around between different lenders in order to find yourself the best deal. Every penny saved before you buy goes a long way.
Make A Budget
We’re almost at the part where you can start getting out there and looking at houses, but before you do, don’t forget to have a thorough budgeting plan. You need to know what price range you can afford, as well as all the little details such as the costs of any renovations, appliances, utilities, and so on. When you start off with a detailed budget, you can feel more confident about what houses you can and can’t afford. In addition to keeping your finances in check, Alexander Diaz de Villegas states a budget will help to immediately narrow down the scope of homes you can afford, before entering the market.
Pick A Location
When you finally reach the part of the process where you’re going out and looking for a house, location is the first thing to consider. Wherever your potential home is located must meet the needs of everyone who will be living in it, and there are several factors applicable to determining viability. Seemingly mundane things such as work commutes, proximity to grocery stores, and the overall busyness of the immediate area should play a significant role in whether a house will be the appropriate fit.
Hire A Real-Estate Agent
Before you get too far along in your search for a new place, don’t forget that hiring a real estate agent is necessary. In addition to improving your knowledgeability, a real estate agent is also a second set of eyes that can help you see things that you otherwise would have missed. According to Alexander Diaz de Villegas, the assistance an agent can provide will shift you away from feeling overwhelmed by doing everything yourself towards having a sense of focus and relief.
Make an Offer
When you think you have the house that you want to go ahead and purchase, you’ll need to make an offer. Sometimes, in order to land a deal, you’ll have to get competitive, but it’s always important to keep your budget in mind so that you don’t overspend. No matter how badly you may want a particular house, keep yourself grounded by only making offers you know you can follow through with.
Having the house inspected is a must, as it’s the only way to take any potential unpleasant surprises out of the picture. You’ll want an expert to comb over every room, every nook and cranny in order to ensure that you’re getting what you pay for because you never know when there might be something hiding just under the surface. Foregoing a home inspection can be a detrimental error and can in the worst cases result in the home not being insurable.
Get an Appraisal
Towards the end of the home purchasing process, you’ll need to get an appraisal. Much as is the case with getting an inspection, it’s better to be safe than sorry. According to Alexander Diaz de Villegas, an appraisal will get everyone on same the page, from your realtor to your mortgage lender, sealing the deal with official paperwork and concrete facts. Buying a home is a collaborative effort, and ideally, you want all involved parties to have their needs satisfied.
Aside from the fact that insurance is required by most mortgage lenders, it’s simply good practice. No matter how careful you consider yourself, you want to plan for the things you can’t control, and insurance is essentially the only way to have reassurance on the matter. Think of it as a long-term investment in your home, something that you may not see the use of for quite some time, but you’ll be thankful for in the future because you prepared in the present.
There are a plethora of steps involved with buying a house, and a great deal of care, self-motivation, and attention to detail are all required. With the proper planning, you can be living in your ideal home before you know it and alleviate yourself of potential anxieties on the way there. It might seem like a lengthy process, but it’s 100% worth it to do it right.