House buying can be a daunting process because it requires a lot of time, effort and determination yet it may just be the most emotionally charged and expensive purchase of your life. It is important to do a thorough research to buy homes. To most people, owning a home is a dream come true that will usually require you to make major sacrifices. This process is usually complicated but not impossible. Therefore, below is a step by step process to buy homes fast.
- Check Your Credit Scores and Reports- Your credit reports show whether you have serious credit problems in the past or if you have a habit of late payments. A low credit score could hurt your chances of ever getting the best interests or financing. A credit score is usually calculated based on the information from the credit report. Errors on credit scores are common and therefore this can easily be resolved and could usually take up to 3 months. However, if the report shows any past problems, you should, therefore, be ready to give an explanation to a loan officer if you plan on getting a loan to buy homes.
- Set up your budget- Always determine how much you are ready you pay or can afford to buy home cash. However, to get an accurate figure, you can ask to be pre-approved by a lender who will thus look into your credit, debt, and income to determine the kind of loan that you can ask for. It is always advisable to aim for a house that is about two and a half times your gross annual salary. However, if you have other financial obligations such as an alimony, then you will have to set this lower to enable home to buy.
- Get your finances in place– To begin with, you will need to determine how much of a deposit you can make. You can cash in any long-term savings that you have for the house. Although you cannot usually get a mortgage before buying a house, it is wise to get a mortgage in principle that will eventually put you in a stronger position. At this point, a mortgage broker will come in handy as he/she will help and advice you on mortgages and scan for the full range of mortgages in the market for your special needs and circumstances.
- Find the Right Real Estate Agent– Real estate agents are usually very important partners to buy homes They will provide you with helpful information on the neighborhoods and homes that would normally not be easily accessible to the public. Real estate agents have good knowledge of negotiations, the home buying process and are familiar with the neighborhood you want to buy your home. They can, therefore, be extremely valuable in this daunting process of buying a home. Most agents will not cost you as they are usually compensated from the commission that is paid by the seller of the house.
- Find your dream home- The first step is deciding on the city or neighborhood that you would like to buy your house in. Always pay attention to your needs such as schools, traffic, and noise level amongst others. It is advisable not to fall in love with a house at first sight because it may end up not meeting your needs. Make offers based on the recent sales in the neighborhood and on other houses that you have seen. It is also wise to do research on the seller’s circumstances and tailor your offer accordingly. For example, if they have just or already bought a house then they may be more flexible on the price, unlike a seller who has been waiting for years and is holding on for the best price. Always make sure that you are checking the little details of each house that you view. These can be trying the electrical system by switching on and off, opening and closing the windows and even testing the plumbing system by running a shower.
- Make an offer and get it accepted- If you are satisfied that the house meets all your needs, you would then make an offer. The offer you make will most likely apply towards your down payment and will also include contingencies such as a small holding price and the hiring of a home inspection expert. Your real estate agent would usually walk you through the process and steps of making the best offer possible to buyhome. While it is important to be cautious when negotiating, it is wise to be flexible as you love the house and would not want someone else to beat your best bid for your dream house.
- Get a Home Inspection– Once an offer is accepted, the next logical step is inspecting the house by an expert to check any structural damages that may need fixing. The real estate agent will organize an inspection that will be conducted a few days after your offer has been accepted by the seller. The inspector will send the report to both the buyer and seller. From the report, you can then decide to make the seller fix anything in the house after which you will walk-through the house to make sure that all the things in the inspection report have been fixed before closing the sale.
- Get a Contract– Once your offer has been accepted by the seller, it is important to have you your lawyer go through the contract to buy homes before signing it. The seller’s lawyer will normally send your lawyer the contract to go through it. The contract will set the closing date which can always be negotiable.
- Close the Sale– At this point, you will sign all the necessary paperwork that is required to complete the purchase of your dream house. This is when you will receive the title deed to your home from the seller. After all the paperwork you will receive the keys to your dream home.
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