9 Steps to Buying a House

9 Steps to Buying a House

There’s a lot to know as a first time home buyer. For some, the process seems to move quickly while for others it drags on for far too long. But, either way, knowing the steps of the process will help you to stay on top of your part and be prepared for whatever is coming next.

1. Save up for a down payment

Your down payment is an important first step in your home buying experience. While the standard down payment is 20 percent, there are some mortgage programs that let you make a down payment as low as 0 percent to 10 percent. But, it’s important to remember that many times the higher the down payment you make the better interest rate you are going to get.

2. Know your credit score

Your credit score plays a major role in your ability to get approved for a mortgage. As you save for your down payment find out what your credit score is and continue to improve it along the way.

3. Talk to a lender

Many people think they should talk to a real estate agent first, but your first call should actually be to a mortgage lender. Getting pre-approved for a mortgage will let you know how much of a budget you have to work with. It also helps show sellers that you are serious and a safe bet when you make an offer.

4. Choose your real estate agent

Yes, you can buy a house without using a real estate agent, but there’s no reason not to use one as the buyer. The seller is the one that’s going to pay the commission so you should choose an agent to help you through the process.

5. Start looking for a house

This can be the most fun and the most frustrating part of the process. When you start your search, make sure you know what you’re looking for. It’s also helpful if you know the difference between what you want in a house and what you need in a house.

6. Write a killer offer

Once you find the house of your dreams, or the one you are ready to buy right now, it’s time to write an offer. Talk to your real estate agent for help in what you need to include. Remember that you want the seller to choose your offer so think about what they’re looking for.

7. Schedule a home inspection

It’s a good idea to get an inspection on the house before you close on it. This will help you spot any potential problems that need to be addressed.

8. Have the home appraised

An appraisal will be required by your mortgage company. They want to know that the money they are investing is something they can recoup if you default on the loan..

9. Close on the house

During the closing process make sure you stay in close contact with your real estate agent and mortgage lender. You want to make sure that the process is never waiting on you in order to move on to the next step.

Once you close on the house, you get the fun part of moving in. The house is now your house to put your own personal touch on. Enjoy every moment of it!