A Guide To Buying A Home

Posted by on Feb 11, 2016 in Buying Home, Buying Home Tips | Comments Off on A Guide To Buying A Home

A Guide To Buying A Home

Buying a home is the biggest step in the life of every individual or family. It is not something you do often, and most people do it only once in a lifetime, so it is very important to do it properly from the first step to the last. Naturally, buying a home is not an easy task, it requires a lot of planning, thinking, time and money, and in this article we will give you a few tips on how to make sure that you will successfully buy a home that will meet your criteria and fit in your budget.

1. Determine what you can afford – naturally, you need to stay within the boundaries of your budget, and if you are about to apply for a mortgage, a general rule is that the home value does not exceed two to three times of your annual income. When it comes to the monthly mortgage installment, it should not exceed 28% of your monthly paycheck, considering that you do not have any additional large expenses.

2. Find the appropriate mortgage and apply for pre-approval – once you have determined your budget, it is time to search for a mortgage deal that will be the best for you. Make sure to shop around and explore as many options as possible, in order to choose the one that will fit into all your criteria. Once you find a reliable mortgage provider and a suitable mortgage, it is advisable to apply for pre-approval, because it will prove to the seller that you are eligible of buying a house.

3. Decide what your home must have – before you start looking for a home, it is important to determine the criteria based on which you will search for the new home. You should determine the features you want your home to have, as well as those it would be nice to have, but which are not mandatory. Naturally, try to fit in the criteria into the budget and do not be unrealistic.

4. Find a reliable real estate agent – if you are a first-time home buyer, you may need to hire a realtor, in order to get the necessary help in finding the ideal home. Find a real estate agent with a license and good recommendations. He or she also needs to know the area well enough and to be able to answer all your questions.

5. Research the insurance – depending on the area where you are looking to buy a home, you will need to research the insurance opportunities and requirements. Basic homeowner’s insurance covers fire, theft, storm damage and liability if someone gets hurt on your property. However, you can add other types of insurance as well, so make sure to explore the options.

6. Make an offer – making an offer can be tricky, because you do not want to overprice the house, but you also do not want to low-ball the offer and potentially lose the house to some other buyer. Base your offer on the prices of other homes in the area and consider how long the house has been on the market before you state your offer.

7. Review the contract and submit the mortgage application – the final step is reviewing all the contract details and understanding every clause. After you have done so, you are ready to sign the contract and apply for the mortgage.