When buying a new home, it can be hard to know where to start. If you’re a first-time home buyer with plans to buy near Eagle Mountain Lake, then follow this step-by-step guide to help reduce your anxiety, and give you the confidence you need when purchasing your dream home.
Determine Your Budget
Before you start searching for your dream home, you need to crunch some numbers and determine your budget. Redfin recommends checking your credit score before you take out a mortgage loan. If you have a high credit score, you’ll be approved for a lower interest rate on your mortgage, and you’ll be able to afford a larger home. When determining your budget, consider your current income, expenses, and savings goals. Also, take into consideration the additional cost of owning a home, such as homeowners insurance and higher utility costs.
Get Preapproved for Your Mortgage
After checking your credit score and setting your budget, get preapproved for your mortgage to streamline the buying process, and make your offer more appealing to home sellers. You’ll first want to shop around for the right type of loan that fits your budget and your circumstances. Obviously, homebuyers want to find the lowest interest rate possible on their loan, and there are several ways to achieve this. The most obvious is to bring a larger down payment to the table. This typically ensures a lower interest rate. However, not everyone has that kind of savings available. Another popular option is to buy down points (also known as buying down the rate), wherein you pay a percentage fee to the lender at closing to ensure a better interest rate. At first glance, this might seem like a no-brainer, but it’s important to do the math first to see if buying down points is the best option.
Once you’ve settled on your loan, getting pre-approved is easy, and a short appointment with your bank or a lender will give you peace of mind knowing your offer will likely be accepted. Before the appointment, make sure you collect any paperwork your lender may need, such as tax returns or credit card statements.
Hire a Qualified Realtor
You can do some house hunting on your own, but in order to find the right home at the right price, you’ll want to work with a qualified real estate agent. They’ll help you determine your priorities, determine the best neighborhood for your needs, and advocate for you during the buying process to help you get the best price for your new home. Before you hire a real estate agent, do a few interviews, and meet several qualified agents to find a person who understands you and will help you find the home of your dreams.
Look at Homes
After you’ve completed all these steps, you can move on to the most exciting part of buying a home: house hunting! Look at homes with your real estate agent, make sure you’re only viewing homes in your desired neighborhoods, and check homes that fit your budget and requirements. Tour as many homes as you can and refine your search as you go.
Make an Offer
Did you fall in love with a house? If so, then it's time to make an offer. Work with your real estate agent to tailor the perfect offer, and don’t forget that the listed price is only a starting point. Making an offer is just the first step in the negotiation process, and depending on the market, you may want to make an offer above or below the listed price.
Get a Home Inspection
Before you close the deal, get a home inspection to avoid any unpleasant surprises. Make sure the home is in good repair and that there won’t be any unexpected costs. If the home inspection uncovers some flaws, you may need to renegotiate the offer, ask the buyer to fix the issue before purchasing the home, or offer a lower price if you plan to do the renovations yourself.
Closing the Deal
The final step to buying a home is closing the deal. Carefully read all the paperwork one last time, sign all the documents, and get ready for the big move. Once you’ve closed the deal, you’ll need to get homeowners insurance, set up your utilities, change your address, and arrange a day to pick up the keys to your beautiful new home.
Don’t start your search for the right home in the wrong way, but follow this step-by-step guide to buying your new home and don’t get overwhelmed. Crunch some numbers, find a great agent, and don’t compromise on location. The process doesn’t have to be complicated, and if you focus on one step at a time, you’ll soon be in the home of your dreams.