Once you decide to buy a house, prepare to navigate several challenging steps. It’s easy to become overwhelmed looking for the best Realtor, financing options, and home inspector. You’ll find 7 tips below to help you understand how to buy a house.
How to Buy a House With a Buyer’s Agent
It’s possible to find a new home by browsing through online listings. However, you’ll have a better chance at success when you have a buyer’s agent to help you. A buyer’s agent knows the homes that have recently hit the market, arranges showings, and negotiates with the seller for you. To find a Realtor, ask people you know for recommendations and look at reviews online.
Create a List of Wants and Needs
When you decide that you want to buy a new house, carefully consider what you must have and what you would like. You’ll present this list to your Realtor so he or she can narrow down your options.
Brainstorm features that are non-negotiable for you, for instance, enough bedrooms for your family. Then make a list of amenities that would be nice to have, but you don’t need, like a fireplace.
How to Buy a House: Get Pre-Approved for Financing
Get pre-approved with a mortgage lender so that you don’t waste time looking at homes you can’t afford to pay for. Pre-approval also makes you look better to sellers. They’ll take your offer seriously when they see that the funds to buy their home are available.
Make Sure You Can Afford the Monthly Payment
Keep in mind that lenders typically approve people for loan amounts that are more than they can afford with all their other monthly expenses. A loan officer doesn’t think about other costs like home maintenance or childcare payments when approving you for a mortgage.
A good rule of thumb is to take on a monthly mortgage payment that equals no more than one-third of your income after taxes. This makes sure that money is left over each month to afford other responsibilities.
How to Buy a House by Placing a Fair Offer
Low-balling your offer isn’t the most effective way to go about business. Sellers won’t take you seriously when you make offers that are far below market value. Your agent will help you make a fair offer that has a good chance of getting accepted.
Don’t Become Attached to Any House
Always remember that there are plenty of homes on the market. It’s easy to make bad financial decisions because you become too attached to the features of one particular house. Don’t get upset if your offer on a house is rejected or the deal falls through. You’ll eventually find another home that you love just as much.
Order a Home Inspection
Never buy a home without getting it inspected. Home inspections only cost a few hundred dollars but can save you from making a buying mistake that costs you tens of thousands of dollars in unexpected repairs.