Are you considering buying a new home? Maybe you’ve checked out a couple of houses or found a new home you’re already interested in. Don’t rush straight into buying a new home though, as there are a few crucial factors you need to take into consideration before you sign the dotted line and head to your closing.
Purchasing a home requires plenty of research – after all this will be where you live for a large part of your life. Before you dive into buying a new home you need to make sure you understand the process exactly. Here’s the three step process that every buyer should follow.
1. Locate and discover
The process of buying a house usually will occur organically and more often than not it will begin around a year or more prior to the actual purchase of the home. To start off you will view different home listings on the internet to see which types of homes are available in the different price ranges. Location is certainly something you need to take into consideration not only for the surrounding environment and scenery, but also for the value. For example you can buy a 4 bedroom house in one specific area for the same price as a 1 bedroom flat in another area. You should begin with searching for homes in some of your favorite neighborhoods. Look at the reports on home values and review the statistics. After doing this you should start to piece together a list of priorities to narrow down your search. The majority of buyers will identify a property in this stage which prompts them to quickly move onto the next stage in the process.
2. Do your homework
You need to do the math and all the homework before rushing into buying a new home. Most of us out there need a mortgage in order to buy a new home. It’s true that this process has become much easier than it was as we move away from the lending and financial crisis, however it is still challenging for those who aren’t prepared. You need to understand that there are some homes you can afford and some you can’t. Different types of loans are available to you and they can affect your home search so you should pull your credit report and make sure you know your financial situation. You can then get pre-approved.
The majority of buyers will need to save more cash, fix their credit score or allow money to season for a long time before buying. Therefore you should always use the next couple of months to address financial issues.
3. Have fun
You should at some point interact with a nearby real estate agent as having that expert on your side while searching for a new home can prove to be invaluable. Attend open houses and view as many houses as you possibly can. Make some appointments to see houses and before you make any offers you should understand the market completely. By looking at more homes you will get a good feel for the local market giving you more confidence when you see your dream home.
Don’t worry about missing a couple of deals, you’ll only stress yourself out and it’s not that big a deal. This is all part of the home buying process so you should expect to pass a few good offers. There are plenty homes out there to choose from so don’t feel pressured or rushed into buying a new home. Searching for a new house is almost like a job on the side and you should have some fun with it. Making the purchase should always be an exciting moment so make sure you buy a home you love the look of.
You should always keep in mind that buying a new home is a long term investment. It isn’t as simple as buying a new computer or phone. The process needs to be taken with caution as you don’t want buyer’s remorse to kick in. Remember that your new home is going to be a huge part of your life. It is where you will spend the majority of your life so you have to make sure you love the location and the home itself. Don’t jump out at the first offer you see and make sure you understand the real estate market in the area before making any offers.