Buying a home can be an amazing experience but even so, it can also be stressful—at least, if you have never bought one before. It can be a very exciting time yet if you don’t know what you’re doing, it can also be an overwhelming time.
To prepare you for your first experience buying a home, we’ve put together some information that can help get you ready for the various stages of the home-buying process. Check out these 5 steps to expect when buying a home:
1. Make sure your finances are up-to-snuff.
A very important stage of the home-buying process and one that should be considered well in advance of you wanting to buy a home. From your credit score to your savings, there are several aspects of financial health that should be present when you want to buy a home. You’ll be needing to make a down payment plus prove that you’re able to pay off debt so take some time long before you plan to buy a home to start getting everything in order. You also need to know what you can afford before you start shopping around, so prepare a budget as well.
2. Find the right loan for you.
If your finances are all in order and you know you’re in a good spot to buy a home, it’s now time to find the right loan for you. Shop around. Find out how to apply for your VA loan. While this isn’t the process of getting approved for your mortgage, knowing what’s available and getting a prequalification letter can help a lot when you start shopping around for the property.
3. Find the property that’s perfect for you. Make an offer.
After you’ve gone through the previous two stages, you’re more than likely closer to being ready to buy your home. If so, start shopping around. Hire a professional realtor who knows the ins and outs of the process, who can get you ready for the process and who knows what to look for, so you can find a home that fits your budget and your expectations. Pro tip: by this time, you probably know what you can and can’t afford. Instead of wasting time into looking at homes that you’d love to buy but simply don’t fit your budget, let your realtor know that you only want to see what you’re willing to pay. This way, you don’t get yourself in deep water, trying to reach too high in terms of price, because you’ve fallen in love with a home that could end up causing you money issues down the road.
4. Be patient throughout the mortgage process.
Once you’ve made an offer on the home that you want, it’s time to be patient through the process of getting your loan approved. This whole process requires documentation, proof of your income and assets, and more, all of which are to prove to them that you are able to handle the process of making payments on your mortgage for the long-term.
5. Time to close.
Once the mortgage is approved, it’s closing time. This is when you pay any necessary fees and receive a closing disclosure. During this experience, you’ll have the opportunity to let the lender know if you aren’t in agreement with something or if you don’t feel right about an aspect of it. If you’re in agreement, it’s time to sign (remember carefully going everything), and in a couple of days when the funds are processed and the keys go into your hands, you’re ready to walk into the home of your dreams.
Buying a home is a big decision and it’s important to take your time during the process. With that being said, when you find the home of your dreams, it can be the best feeling in the world: a place to call your own that will offer security and comfort. Happy house hunting!
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.