Be Smart House Buyer
10 Steps for buying a Dream House
#1 Don’t let your emotions run the show
When you start thinking about buying your first house, it’s easy to let your emotions run the show. Take all information into consideration, that is subjective, factual and analytical. You need to understand on the reasons why you need a house. It’s all easy to buy or invest one today, but that may affect your ability to build wealth in the long run.
Buy Vs Rent
You could buy a home, or you could rent one.
With so many variables—personal and financial—in play, whether to rent or buy may well come down to your financial circumstances, future goals, and individual personality. Before you make the leap, survey your personal situation and readiness for homeownership first.
#3 Build Your Budget
Don’t purchase more house than you can afford. But what constitutes “affordable” will differ from one buyer to the next, and you need to know your budget – the spending plan for buying your house. An effective budget will map out your plan to set aside money for your down payment and additional costs. It will also help determine the price of home you can afford.
Investigate Mortgage Options
You should be pre-approved for a mortgage before you start house hunting.
There are many different types of mortgages. If you don’t have the 20-30% down payment for a conventional mortgage, you can get a high ratio mortgage, combined with mortgage default insurance, that allows for a smaller down payment.
FInd a Professional & Experienced Realtor
Remember not all realtor are the same.
Your realtor will play a vital role in your homebuying experience. The best realtor will be a combination of a personal advisor, consultant and negotiator.
A true rock star will have:
- Specific experience assisting home buyers like you
- Full-time real estate experience for at least five years
- Great communication and negotiation skills
- A super-serving attitude that makes you feel like you’re their only client
- An impressively long list of buy/sold homes every year
- Exceptional experience and awards in local market
Before you dive into the home search, create a checklist of must-have home features, the neighbourhood and the surroundings.
Share this checklist with your realtor and use those criteria as the foundation of your home search. He/She will be able to help you set realistic expectations and target your search to the listings you can afford.
Bring this checklist with you during the home hunting process. It do help you remember the features you did or didn’t like and to compare and keep track of the homes you visit.
#7 Make the Offer
Once you’ve found the right home, it’s time to get serious! Your real estate agent will work with you to submit a solid offer. Your offer is a legal document, so ensure you read and understand everything outlined in the paperwork. If you end up in a bidding war with other buyers, keep a cool head. A good realtor will make a big difference in this stage, he/she can give you advice about what/when to give in and what/when to hold firm.
#8 Get a Home Inspection
Once you get to this step, you’ll officially be under subjected contract on your new home! Subjects are simply conditions that must be met in order for the home purchase to complete. They provide you a safety net for you to back out of a sale without losing your deposit if something goes wrong. One typical subject you should not skip is to have a professional home inspection before you purchase the house, because it keeps you from being blindsided by structural issues or expensive repairs.
#9 Final Mortgage Approval
Bank or Lenders have a wide range of competitively priced loan programs. Every home buyer has their own priorities or preference when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase with fix-term. And still others pick a loan based on the knowledge they will be moving again in just a few years. Work with your financial professional. If the appraisal comes in short of the mortgage amount, as the buyer it is your responsibility to ensure you have enough funds to complete the transaction, before you should remove the subjects.
#10 Close the Deal
At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. A lawyer can help you to verify and prepare all the documents for your signature before the title transfer and payment. Once you sign all the paperwork, it’s time to breathe a sigh of relief. However, don’t forget to contact your Insurance agent for purchasing a Home-Owner Insurance before you plan your move-in.