To say the least, finding a dream home is an accomplishment that tops most people’s bucket lists. Whatever the desired location or living requirements of the parties involved, there is no shortage of big decisions to make.
No matter what is going on in life, you don’t need the added stress from wasting time and valuable resources on making the wrong decisions! This guide has been created to provide suggestions for the most effective way to search for your dream home, helping you save time, money, and energy during the home buying process.
1. Getting Started
Planning, Budget and The Process
Does it make financial sense? Before you buy a home, you need to know how you will finance the property. Regardless of the reason why you need to invest in real estate, if it doesn’t make sense financially then it isn’t going to happen! Then at least by assessing your finances in this way you can better understand how to make investing a possibility.
The first step in this process is to determine your budget and how much you can spend on your home. Online tools are a great way to get a quick and accurate quote. By entering details about your income, down payment, and monthly debts, you can estimate the mortgage amount that works with your budget in less than 5 minutes.
Make sure to familiarize yourself with the overall mortgage process, as well as with real estate terms and definitions. This will help with your understanding and communication with the potential investment and any professionals involved along the way.
2. Securing Finance
Credit Scores, Down Payment Assistance and Getting Pre-Approved
Understanding your credit score can play an important role in the process of securing your finances. Strengthening your score will ensure there are no problems with securing a Mortgage. Improve your score by paying bills on time, keeping credit card balances low, and opening new credit only when needed..
Down Payment Assistance – The days of easy credit are gone, but lacking a down payment does not have to be an obstacle. From down payment assistance grants to interest-free second mortgages and other special mortgage programs, there is a growing number of options for people wanting to buy a home without a down payment.
Get Pre-Approved – Though not an essential step, getting Pre-Approved has a number of benefits such as:
- Further financial qualification
- Rate guarantees for up to 90-120 days
- Shows your commitment to buying a home
- They are free!
3. Research and Due Diligence
Survey the Area and Look for issues
Where do you want to be located? How much do you know about the area where you plan to purchase? How do the homes you are viewing compare to single family homes in your area? One of the fastest ways this can be done nowadays is online using tools. Through these tools, users can perform surveys and valuations of real estate listings. With in-depth overviews of each listings features, you can view past sale and tax histories, neighborhood market guides, school locations, and other comparable homes.
Conducting proper due diligence on the home itself before it’s purchased can significantly reduce your risk of something going wrong after closing. Plan a home inspection where a qualified professional looks for issues. If possible be present whilst they are doing the inspection to ensure you know exactly what is in the report.
4. Hire a Team
Surrounding yourself with the right people is key to any successful venture. Dealing with real estate may require hiring various professionals to get the job done. While there are people who are qualified in some areas to sell their own home, difficult situations can arise and it can prove worthwhile to have added certified professionals on your side.
Here is a list of suggested professionals to contact;
Real Estate Agent – Selling a home takes time, knowledge of neighborhood trends, and negotiating skills. A good agent will help save you valuable time, energy, and money. Find one instantly in your area online.
Mortgage Professional – Working with an experienced, competent mortgage broker can help you find the right mortgage, saving you additional legwork because of the added access that they hold.
Real Estate Attorney/Lawyer – Homebuyers frequently won’t hire a Real Estate Lawyer until after a sale is made. But hiring the right lawyer early in the home-buying process can save you time, risk and most importantly, money. This is one of the biggest purchases of your life, and it pays to ensure it is done right and that all of your legal rights and protections are adhered to.
5. Negotiations and Closing
Knowledge is Power, Securing Homeowners Insurance, Final Walkthrough and Moving Plans
The more information you have will help to leverage your negotiating power during the closing stages of the process. The professionals that you have chosen to work with will assist and advise you where necessary to ensure the best outcome.
Just in case the worst might happen! Take the time to shop around and choose the insurance you need in terms both of coverage and premium.
Take your time when you are doing your final walk through inspection. Many a buyer has been so busy dreaming of their new home that they have neglected due-diligence, and missed an important item that was contracted to convey upon closing. Have a copy of your Sales Contract with you so that you can review any items that should be included with the house.
If you plan to use a moving company, then make comparisons before the day of closing and reserve services ahead of time. After you sign on the dotted line, you will be able to turn the key and move into your new dream home without delay.
On the outlook, the process of buying a home might seem to be a rather daunting task, but with the right amount of preparation and planning it can be a truly life changing/enhancing decision. Through using the information set out in this guide, we hope that your experience will be both positive and successful. So what are you waiting for?!