We all need a place to call our own. Whether you’re moving out of your parents’ place for the first time or you’re just plain tired of renting and want to graduate to being a full-blown homeowner, buying property can be intimidating for a first-timer. The truth is, though, the whole process can be broken down into a handful of straightforward, easy-to-follow steps.
Organize Your Finances
The first and most essential of all steps to buy a house is getting your finances in order. That means not only saving up for the down payment, which is usually around 20% of the property’s total sales price, but also getting your credit score under control. Most mortgages require a minimum credit score of 580. If your credit is lacking, do your best to pay off any lingering debts and make payments on time.
Find the Right Location
When searching for a place to call home, location is just as important as the house itself. Consider your needs and preferences. Are you looking for a property in an urban area, suburban area, or rural area? What is the local climate like? What is the local economy like? How bad is the crime rate? Are good schools, hospitals, shops, entertainment, or emergency services located nearby?
Apply for a Mortgage
If your finances are as well-organized as they should be by this point, you’ll want to start shopping around for mortgages. Don’t be afraid to compare different lenders; it could help you get a better deal. An important thing to keep in mind: fixed rate mortgages are more reliable but tend to have high interest rates, while adjustable rate mortgages offer more flexibility but can also be unpredictable.
Get a Full Inspection
Most of the time, someone selling a house will have already arranged for a full inspection of the property. If they haven’t, though, that could be a red flag. You should never buy a home that hasn’t been inspected by a professional and given a clean bill of health. Otherwise, you could end up paying more for electrical, plumbing, roof, or foundation repairs than you paid to buy the house in the first place.
Make Your Final Offer
Are your finances in order? Have you found a good property in an ideal location? Have you been approved for a mortgage? Are you satisfied that the house is in good, solid condition? If you answered yes to all these questions, then you’re ready to move onto the final phase of becoming a homeowner. It’s time to make your offer. Be firm, but open to negotiation; if the price isn’t right, then you might want to look elsewhere.