Buying a house needs a lot of time and effort. Are you planning to buy a home?

The following 10 steps can help you make the home buying process manageable and assist you in making wise decisions.

Let take a look at the home buying process in the below points.

Specify Your Budget

The first thing that who buys a house for the first time needs to determine is how much they can afford to pay. That will make your search significantly more efficient. When calculating your budget, include all additional costs such as insurance premiums, property taxes, etc. Once you determine your budget, you will know which houses are within your reach.

Conduct Research

You have to invest your time in this crucial step. Search the properties through the portals of real estate, newspapers, radio, TV, and so on. You can find properties that meet your criteria and your budget. Make as many visits as possible based on property information.   The more houses you visit, the easier it will be to get an idea of the real value of the property on the market.

Location

If you are going to invest in a property, look for the means of communication or services that you require like education, health, security, transport, recreation and supply. Avoid the properties located near high voltage lines, fuel tanks, underground pipelines, etc.

Specify Your Needs, Plans and Desires

Determine precisely what you are looking for such as a number of rooms, size of the land, proximity to shops and schools, privacy and open spaces or local services, etc. Evaluate your needs for the future such as the upcoming arrival of children if you are a new couple, the presence of stairs if you have elder parents, maintenance of the property etc.

Get a Pre-Approved Mortgage

If you have found the financial institution with which you can get a loan, and then pre-approve your loan. Even before negotiations begin, many brokers or sellers ask for mortgage pre-approval.  This document demonstrates your ability to pay and also proves that you are a serious buyer. 

Hire a Professional Real Estate Adviser

If you are interested to buy a house in a particular area, connect with a local real estate adviser who is familiar with that area. The adviser will have invaluable experience and knowledge about the neighbourhood and local issues such as schools, new developments and price trends.

Consider Your Down Payment

As a first time home buyer, you probably have some set-aside funds to make a down payment on your dream home. It is recommended that you have about 20% of the purchase price available. However, several credit and mortgage programs can help you with a down payment for a significantly smaller amount. Know your options before you start.

Have Your Credit Ready

Owning a house is one of the big decisions you have to make and to be prepared. Collect the necessary documents like your credit report and identify problems with your finances so you can solve them in advance.

Assess the Property Physical Structure

A qualified home inspector can provide information on important aspects such as the condition of the electrical installation, plumbing, roofing and foundations. So, before the sale of your house closes, you may even be able to ask the current owners to correct any potential problems.

Review the Documents to Close the Purchase Deal

At the time of closing your purchase deal, you have to sign all the required documents provided form the seller.  You have to review it carefully. After the completion of all the process, the seller will hand over the keys of your new house.

By: Shailaja K