Buying a new house requires a lot of effort and time. It doesn’t only include looking at houses and paying for the one you like. It encompasses several steps from arranging finances to looking at several houses until you find that one house that not only fits your budget but fulfills your Wishlist as well. We have listed down a few steps that can make the home buying process manageable.
Start an offer: Most buyers find it extremely helpful to have a professional real estate agent on their side to guide them through the process. As per the research, 85% of buyers use a real estate agent during the house hunt. Indeed a real estate agent has better market insights and experience but, if you are going to fund your next house down payment by selling the existing one then having a house-buying company by your side is an ideal deal. Not only do they have a local familiarity but will buy your house as it is and against cash.
Get a preapproval letter from your lender: Remember, the house owner doesn’t set the price, it is set by the market conditions, neighborhood, and other external factors. So, if the cash received from a house buying company is less than what you need to buy a new house then get a preapproval letter before you start looking at homes. This way you will get a realistic picture of how much you can afford. The bank will calculate your debt-to-income ratio and analyze your financial health before letting you know how much you can borrow. Consider this more like getting an official verdict on your home buying budget and when you show this letter, it signifies you are serious about buying the home.
Make a list of what’s important to you: Do you have kids? Are you planning to have one year down the line? What is it you are specifically looking for in your new home? It could be a giant kitchen for your business or a space for a barbeque to host friends and family. Put down every detail on paper and write what’s negotiable and what’s not against them. Make sure you prioritize your Wishlist to fit your budget.
Start the home search: Now that you have an estimated idea of how much you can afford, it is time to start searching for the home. But remember while searching for your next abode, try to be flexible with your Wishlist. For example, after house hunting for days, you might realize it is worth sacrificing a need for the larger bathroom to buy a specific house in your favorite neighborhood.
Inspect the house: Once you have narrowed down the house, be sure to consider the health of the home to have an idea of what needs to be done once you shift there. While touring the property, keep an eye out on the structural defects and cracking, electrical issues, noise from neighbors, or traffic.
Wrap it up: Before closing, make sure you purchase a homeowners insurance policy and on closing day expect to spend at least a few hours doing paperwork. Once the signing is complete and the property deed is transferred to your name, you will receive your keys.
You have narrowed down whether to sell your house to a real estate agent or a house-buying company by weighing pros and cons but, have you got the time to draft a rough checklist on how to go ahead and get the process of buying a new house be done and dusted? Before searching for a new house, make sure you tweak a few changes in your existing house before putting it on the market for others to buy. This will not only help you fetch more price but reduces burden in financial aspects as well.