Buying a home is not rocket science. But it’s not exactly a walk in the park either. If this is your first time buying a house, you might feel confused and intimidated by the process. But you feel like the time has come to finally buy a beautiful home for your family so that you will figure it out.
And these tips on how to buy a home will help you get started.
Save more than enough money for a down payment
Do you have enough money for a down payment? If not, you should delay your home-buying project so you can save some money.
Aim for a down payment of at least 20% of your home’s purchase price, which should make it easier to get
Research first-time home buyer incentives
Before you learn how to buy a home, checking whether you qualify for home buyer incentives is an excellent idea. And if this is your first time looking for a home to buy, you certainly qualify.
For example, you could benefit from the First-Time Home Buyers’ Tax Credit. Depending on where you live, different rebates or savings plans should make it easier to buy a house.
Consider hiring a good real estate agent
Although buying a house on your own is possible, it’s easier to do it with an experienced real estate agent. Plus, it can help you get a better deal.
But don’t hire the first agent you see. Check their track record and ask them questions to determine if they understand your needs. You can also see if they’re the right fit for you.
Get officially approved for a mortgage
If the seller accepts your offer and you’re satisfied with the home inspection results, it’s time to go back to your mortgage agent to get officially approved for your mortgage. They will help you find the right mortgage and mortgage lender for your situation.
Gather some important documentation
You must get your finances in order and gather some important documents. These will be necessary to apply for a mortgage.
First, you should check your credit score, as a high one will help you get a mortgage. You will also need government-issued photo identification, proof of income, information about your debt and assets, and proof of a down payment.
Get pre-approved for a mortgage
To get an idea of how much you can afford a home, get pre-approved for a mortgage. This will show you the maximum mortgage amount you could qualify for. If you’re unsure which mortgage option is best for you, seek a mortgage agent.
Start searching for the perfect home
When you have a down payment and know how much house you can afford, it’s time to search for the right home.
You should already know what you want. But now’s the time to really start looking at listings, compare different neighbourhoods, and make a list of homes you want to visit. Your real estate agent will help you in this critical process.
Schedule a showing
When you feel ready to visit a home, your real estate agent will schedule a showing. During the showing, ask plenty of questions. And be sure you visit the entire house, open every closet and cabinet, and test faucets and light fixtures.
Make an offer for the home you want
Once you have found the perfect home, make an offer for it. The seller and you will need to agree on terms and a purchase price.
Follow your real estate agent’s advice. Depending on the current market, they will tell you how much you should offer and based on the value of similar homes in the same area.
Request a home inspection
As part of your offer, you should request a home inspection. This will help you rest assured that the home you want to buy doesn’t hide any issues that would be costly to fix, such as cracked foundations or mould growth.
Home inspections might prevent unpleasant surprises, so don’t skip this step.
Close the deal
Once you get approved for your mortgage, it’s time to close the deal. Your real estate agent will guide you through each step of the transaction, and help you handle all the necessary paperwork. You will then receive the keys to your new home and become a proud homeowner.