Although some of the details might seem different today, the basic procedure of buying a house still remains the same and knowing the main steps will help you get to your desired goal and make your dream come true. No matter how long you plan to purchase, there are just some fundamental things you ought to know. Buying a house is not like purchasing shares or bonds where you can take a little risk. Buying a house means that you are going to pay for the security of certain property and that’s not exactly free money. So it is important to plan what you are willing to invest and how much.
First Step – Assessing your financial and credit score.
The first step in the perfect home buying process is of course, assessing your financial and credit score. This is the only step that no one takes during the entire home buying process. You cannot possibly buy a home if you have a low credit score or no history at all. Assess your financial situation first, then move on to the next step. On the other hand, if you are positive you can afford to buy a home, then you can proceed with the next step. And that next step is finding a realtor who has your interest and trust.
When it comes to finding a realtor, there are actually too many options to choose from but remember, only those who can really show you good houses are capable of doing so. It is important that you consider several things to make sure that you have someone you can trust. It is also good to consider the credit score requirements of these real estate agents before you engage their services.
Second Step – Finding a Loan
The second step to buying a new home is finding a loan that can be used for financing the home search. Lenders will usually require a down payment to encourage the buyer to take the loan. Remember that most first time buyers cannot afford huge loans and hence, a small loan is needed to get the ball rolling. Make sure that the down payment you offer matches the estimated cost of the house so that there will be no problems with paying the loan later.
Third Step – Check Your Credit Rating and Score
The third step to getting pre-approved for a home buying loan is to check your credit rating and score. After checking your rating and score, it is best to contact creditors and request for a copy of your credit report so that creditors will know what you have been doing with your finances. Remember, lenders are only interested in your credit history to make sure that all negative entries are removed from your file.
Fourth Step – Find A Real Estate Agent
The fourth step to buying a house is to find a real estate agent who can help with the next step to buying a house. Most agents will charge a fee but you’ll find that they will do everything to help get you pre-approved for the house buying loan.
After you have already found the right real estate agent, you can start looking for the right house for you. Remember that the first impression you make on your buyer is by buying a house that they cannot afford to live in. Buyers mostly look at how much house can they afford to own. This means you need to work on that first impression to ensure that the buyer can’t turn around and leave the house.