Everyone has a dream house that when they’re capable of buying, some tend to make an impulsive decision. But even if you have the money to spare, buying a home isn’t a walk in the park that you can skip some essential steps and choose one right away without giving it careful thought. So, to help you make a better and more informed decision, learn some crucial things you need to consider first.
Scouting for a House
House hunting can be a tiring process that will involve your full attention to make sure you’ve considered everything that you need to consider when you’re close to choosing a house. It’s a once-in-a-lifetime opportunity for many people. Of course, you want a place that is not just your dream house, but you would also need a community with green and sustainable development projects – a sustainable neighborhood. You would want a future in this house and area, of course.
Besides your future, there are other things you have to also give serious thought to. You have to remember that this is a big step, and you shouldn’t skip any vital part and take the shortcut. Here are what you should do before you officially become a homeowner:
Assess your current overall situation
Now, you should look at your goal and why you want to own a house. Do you want to not worry about paying rent anymore and pay a mortgage instead to help you build equity? Do you wish to remove going through a landlord in the equation? Do you consider owning a house a good investment? These are questions you should ask yourself to assess your current situation and know your goal when looking for a place.
Of course, there are more questions you need to ask yourself. These questions should revolve around your financial situation, which should consider your savings, credit, and spending. Additionally, look at where homeownership fits in your priorities. Lastly, look at the pros and cons of buying a house based on your current situation; if the former outweighs the latter, then you can look at the next few steps.
Scout for a house like you mean it
Based on your needs, you have to ask yourself more questions like what kind of house would be suitable for you. Do you need a single-family house or a duplex? Would you be living with other people? If so, would you need a townhouse, a co-op, or a condo?
If you’re getting confused by all these choices, remember that, as mentioned earlier: it is not a walk in the park to buy a house. But this step shouldn’t discourage you. Go back to your goals and determine the type of house that will bring these goals closer to being met.
During this time, working with a real estate agent would also help you as they can give you all the information you need when scouting for a house. When going through each house, you have to also make an effort to record the information of the things you like and dislike, so you will have something you can review later on. Double-check every corner so you can be sure the house is in good shape, and if it’s not, how it can be restored. Of course, besides the house itself, look around the neighborhood if it’s a safe area near places of interest.
Look at your financing
First-time homebuyers would have some form of perks, like a 3% to 5% minimum down payment. Some would even not require you to make any down payment. Also, when securing your financing, look at your IRA, state’s programs, HUD, and more to make sure your payment options would not be a burden to you.
By this time, you should already have a mortgage officer you can work with. Having one would help you settle your loan and monthly payments alongside some essential documents like the home insurance and homeowner’s policy.
Review everything
Yes, you’ve done your home inspection, but having a professional inspect the property would give you a better sense of the house’s overall condition. These should save you from having to spend any money in case the house needs tons of repairs.
Close the sale
If the inspection went smoothly and you feel comfortable finally making a final decision, you can now close the sale. If there are problems with the property and the seller, you can also look for other properties.
If you’ve closed the sale, then it means you are now an official homeowner. But it doesn’t end there as you would still need to sign paperwork and wait for everything to be processed, which could take a few weeks. But you’ve done it, so it’s time to celebrate for now.
