It’s a well-known fact that buying a house is never easy. As a buyer, you have many responsibilities such as paperwork, finances, and coordinating closely with an agent and the seller to ensure the transaction is completed without issues. However, it’s arguably more challenging for first-time homebuyers because it’s a nerve-wracking experience.
Buying a house as a first-time homebuyer is stressful because a buyer may not have the necessary knowledge or expertise to negotiate with the seller and agent. Beyond that, the legal matters involved are complicated, so first-time buyers must have a lot of patience. For this reason, we’ll guide you on how to buy a house if you’re a first-timer. The steps are as follows:
Step 1: Check Your Credit Score
Your credit score is one of the most crucial factors in determining whether you can secure a loan to buy a house. Although it’s not the only factor, it’s the most vital. If you have a low credit score, it indicates that you’re a risky investment for financial institutions and lending companies. This is why you shouldn’t be surprised if you’re declined for a loan.
Step 2: Put Together a Down Payment
While there are programs that allow you to buy a house without a down payment, there are a few considerations involved. Many such programs have stringent requirements; more often than not, certain conditions must also be met to make this option available. And at the end of the day, you will still have a larger amount to pay if your forego a down payment.
A down payment can significantly reduce your monthly payments and can put your lender’s mind at ease. You are more likely to be offered better interest rates and better deals overall.
Step 3: Get Pre-approved for a Mortgage
Getting pre-approved for a mortgage is the most critical step in buying a house. This step requires you to submit all the necessary documents to the lender and get a pre-qualification letter from the lender. The letter indicates that the lender has reviewed your credit report and determined that you’re eligible for a mortgage. This also tells the seller that you’re a serious buyer!
Step 4: Hire a Real Estate Agent
Working with a real estate agent is necessary to help you buy a house. An agent is a professional who provides services in the real estate field. With the help of an agent, you’ll be able to find a house and negotiate a fair deal with the seller.
Step 5: Shop Around
Once you’re pre-approved and have hired the services of a real estate agent, you can start to look around for the perfect home. You can begin by searching on various websites and visiting open houses. When shopping around, you need to be careful and ensure you’re not falling into the trap of buying an overpriced home. You should also make it a point to bring your agent with you to get professional input.
Step 6: Make an Offer
Once you’ve found the perfect home, you can proceed to make an offer. Your offer should include the price, closing date, and any other conditions that you think would be important. If you’re prepared to move in immediately upon closing, you can ask for a closing date of 30 days.
Step 7: Arrange a Home Inspection
A home inspection is precisely what it sounds like: a professional inspection of the house you want to buy. The assessment is performed by a qualified professional who will assess the place from the wall to the roof and examine the house’s structure, electrical, plumbing, and other systems. The inspection report will help you negotiate with the seller to fix any defects or issues.
Step 8: Get the House Appraised
A property appraisal is performed by a licensed professional to determine the value of a house. The appraisal is crucial in determining whether the seller is willing to accept your offer. If the seller refuses to accept your bid, you can either negotiate again or walk away from the deal.
Step 9: Close the Deal
For the final step, all you have to do is wait for the closing date, which is the day you and the seller sign the final paperwork and transfer the ownership of the house to you.
Buying a house for the first time can be stressful, especially if you’re a first-timer. Although it’s never easy, you’ll have an easier time following the steps mentioned above. All that matters is doing everything by the book to ensure you’ll have little to no problems.
If you’re looking for home buying experts, BuyHouseEZ can help you! We understand that everyone has different financial circumstances, so we develop solutions to get you one step closer to your dream home. Simply go to our website to get started!