Did you know that the United State’s real estate market is worth almost The US’s and China’s GDP combined?
That’s right; the US real estate market is worth $33.6 trillion, while the combined GDPs of these two countries is approximately $34.1 trillion. Regardless of how you look at it, the US property market is huge.
Such a vast market translates to millions of properties for sale each year. You might be itching to get yourself some property too, and why not. However, the first step in buying property is knowing how to buy a property.
Buying property isn’t as easy as waltzing to the property you want to buy with a briefcase full of money and sealing the deal. It’s way more complicated than that, but we’re here to make it simpler for you. Today’s house buying guide will show you how to buy property step-by-step.
Determine Whether You Can Afford the Property in Question
The internet is rife with a plethora of homes for your picking. We’re talking everything from simple ADUs to massive mansions complete with a mini theater. There’s so much to choose from that finding the perfect home can be a tad challenging.
Regardless of what house you pick, ensure you can afford it in the first place. Don’t make the mistake of overreaching for a home that’s beyond your budget. Doing so only sets you up for a future of financial turmoil.
Before you buy a home, first consider what you’ve managed to save for the down payment. Next, consider how much you can pay in monthly installments without stretching your budget. This will give you a clear idea of what kind of house you can afford.
Get Preapproved for Your Mortgage
Mortgage preapproval lets you know how much the lender is willing to give you should you take out a mortgage. However, this doesn’t mean that the lender has cleared you for the mortgage. Instead, it shows that the lender has confidence in your ability to repay the said amount.
You can also use your preapproval letter to demonstrate to the seller that you’re able to afford the property in question. You’ll still have to apply for the mortgage eventually to buy the house. The preapproval amount is also not the actual amount you’ll get the mortgage.
The lender will conduct a thorough assessment of your financial situation before you get preapproved. That’s how they decide how much to give you for your mortgage. It’s also worth noting that you don’t have to borrow the entire amount you get preapproved for.
Look for an Experienced Real Estate Agent
Once your lender preapproves you for the mortgage, the next step is to find a reputable real estate agent. A real estate agent facilitates transactions between house sellers and buyers by acting as the middle person. You’ll need a real estate agent to navigate the convoluted world of real estate and give you priceless house buying tips.
A real estate agent will negotiate on your behalf and find the best deals for you. You can ask your friends and family for any real estate agents recommendations. Your lender can also point you in the right direction.
Schedule a consultation with around three to four agents before taking your pick. It’s also a good idea to check out review sites like the BBB to get an idea of who you’re working with.
Visualize What You Want in a Home
Consider writing down a list of what you want your home to have. Do this while exploring houses in online listings. This will help shed light on what you want in your dream home.
Consider stuff like the number of bedrooms, bathrooms, and an asphalt driveway. Doing so helps gives you a clear picture of the type of home you want. It will help you narrow down the options later on.
It’s also important to separate the ‘wants’ from the ‘needs.’ Needs are absolute necessities you must have in your home, while ‘wants’ are elements that might be nice to have.
Start Hunting for a House
Now you have to begin your quest for the perfect house. This will be much easier because you already have a firm idea of what you want.
You can start your house hunting online to look at what house your region has to offer. Online listings also familiarize you with the house market prices in your area. While online shopping is convenient, nothing beats actual house walk-throughs.
Make appointments to visit homes you like or visit open homes. Take notes on each home and even take pictures for future reference.
Narrow Down Your Options
After adequate house-hunting, you should have a handful of houses that fit your fancy. You’ll have to revisit your notes to narrow down your options. Pick around here to five houses that you see yourself moving into.
Visit the houses one more time to be confident with your decision. Ask for as much information about the houses until you’re fully satisfied. Pick the house you think is the most suitable for you and your family.
Make and Close Your Offer
Remember, the listing price is always negotiable. This means you’ll have to make the seller an offer that’s fair to both of you. That’s where your real estate agent really comes in handy.
Together with your real estate agent, you’ll figure out a fair price that you can pay for the house. However, making the offer is a lot more than a single payment figure. It covers our down payment, repayment period, and contingencies.
Once you agree on a final price, you can close the deal. However, it’s worth noting that making an offer when buying an investment property is slightly different from buying a home.
You can learn more here about the same after moving into your new home.
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How to Buy a Property Made Easy
Now that you know how to buy a property, it’s time to start your quest for the perfect home. We hope our house buying advice will come in handy in your search. Remember to take your time before reaching a final decision on your home.
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