Owning a home has numerous advantages, as you are investing in your home, paying down your own mortgage rather than renting and paying someone elseâ€™s mortgage. You can watch your investment appreciate in value over time.
The steps to buying a home may be overwhelming but if your dream is to be a home owner, here are some steps to follow:
Eight Steps to Buying a Home!
Whether you are a first time buyer or a repeat buyer, find a realtor you can trust.
2. Get a mortgage pre-approval.
Most first time buyers need to finance their home purchase, therefore it is important to talk to a mortgage lender, for a pre-approval, so that you are aware of how much you can afford. This will allow you to look at homes within your budget. This also prevents you from finding a house you really like only to realize it doesnâ€™t fit within your budget.
3. Look for a Home
Educate yourself in your local market. Determine what your priorities are, such as, number of bedrooms, bathrooms, area of interest etc. so that your realtor can help you find homes that meet your criteria and assist you in making an informed decision about which homes you wish to inspect.
4. Making an Offer
Discuss with your realtor the price you are willing to pay. Determine to possession date, when you would like to move in. Discuss any chattels and fixtures to be included in the offer. Discuss with your realtor what clauses you wish to be included in the offer, such as: a home inspection, further visits before closing, if a country property, possibly a septic inspection. There are numerous other clauses that should be discussed and considered with your realtor.
5. Get Insurance
A clause regarding the buyer to contact an insurance company of your purchase is very important. No person would drive a car without insurance, likewise no home owner should be without real estate insurance.
6. Closing â€“ Fulfillment of Conditions
Finalize all inspections of the property to your satisfaction. Finalize all financial details with your mortgage lender. Once all conditions have been met in the Agreement of Purchase and Sale, at this point, it is important to retain a qualified lawyer.
7. Preparing for Closing Day
Finalize closing day by contacting a financial institution if needed. Purchase home insurance and title insurance. Contact all utilities to transfer ownership into your name.
YOUâ€™VE DONE IT! You have gone through the process and you are a homeowner at last.