What steps to take when buying a home
- Get your finances in order and check your credit score. The higher your credit score is, the better the chances to qualify for a better mortgage rate and type of loan.
- Get pre-approved for a mortgage. Before you start your search you have to see if you qualify to buy a home.
- Determine your wants and needs before you start house hunting. Finding the right house can become a long process when you don’t determine in advance what your wants and needs are.
- Once you find your dream house you need to write an offer with help of a real estate agent. Your agent will help you to negotiate the price.
- Inspections, a home inspector will let you know what condition the home is in and what kind of repairs are needed before you buy the home.
- Closing progress/Escrow. The period between offer acceptance and the final settlement is known as escrow, which can take several weeks
Don’t buy if you can stay put
If you cannot commit to stay put for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying a home, you may end up losing money if you sell too soon, even in a rising market.
When you are buying to rent out the property, ask your agent for how much you can lease your rental every month. Your expenses (e.g. property tax, maintenance and mortgage costs) have to be lower than your monthly rent income in order to make profit.
Homes gain on value over time, some years more and some less, depending on the market. The home appreciation rate varies from region and neighborhood. Therefore you should figure out what neighborhood has which appreciation rate before you start house hunting.
Do you want more information? Then check this out and learn more about buying a home.