8 KEY STEPS WHEN BUYING YOUR HOME

Step 1: Decide and Plan to Purchase

Although there may be numerous good reasons about your purchase of a house among which the rise in wealth tops the list. We refer house ownership as the most phenomenal accidental investment ever been made by people. But we have a perception that it results as an intentional investment and leads to the foundation for a life of personal choice and financial security if done in an appropriate way. There may be some solid financial reasons in terms of supporting your decision to purchase a house among which value apperception, equity build-up and tax advantages are the prominent ones. Keep your purchasing decision on facts rather than fears.

·       You are likely to afford and purchase a house if you are doing rent payments.

·       No time may be referred as inappropriate in terms of purchasing the right house. All you are required to do in short term is to search for a good purchase and ensuring you possesses the financial capability to maintain it on long term basis.

·       The deficiency of substantial down payment does not stop you from purchasing your first house.

·       A lower perfect credit score does not necessarily prevent you from your purchasing a house.

·       Purchasing your first house now is the best possible way in terms of getting closer to the purchase of your ultimate dream house.

·       Purchase a house must not be a complicating thing as there are majority of professionals who may assist you in your way.

Step 2: Hire Your Agent

The conventional real estate transaction usually involves the involvement of a number of individuals which may include mortgage brokers, insurance assessors, appraisers, inspectors, underwriters and escrow officers. Some other individuals who may involve include bankers, seller’s agents, buyer’s agents, title researchers and various other individuals whose decisions and actions needs to be organized in terms of ensuring harmonic performance and getting the sale of house closed. It comes under the responsibility and duties of your real estate agent to expertly and efficient coordinate with all the professionals accompanying involvement in your purchase of a house and must act as an advocate to you and your interests over the entire purchasing process. Following are the seven most prominent roles and characteristics of your real estate agent:

·       Analyses your needs, wants and desires.

·       Provides guidance to you about houses which fulfills your criteria.

·       Elaborates you about market.

·       Performs coordination regarding the work of other required professionals.

·       Does negotiations on your behalf.

·       Go through and overviews deadlines and paperwork.

·       Provides solutions to any problems which may arise.

Step 3: Secure and Safe Financing

When the thought of house ownership seems thrilling to you, the thought of acquiring a mortgage may seem downright chilling to you. A large number of first-time buyers begin confusingly regarding the process or remain nervous about making such a huge and extensive financial commitment. From start till the end, you will pass through an easy to understand six step process in terms of acquiring the financing for your first house. Following is the six-step process in terms of financing a house.

·       Select a mortgage specialist or loan officer.

·       Prepare a loan application and attain pre-approval.

·       Analyse what you desire to pay and choose a loan option.

·       Submit an approved purchase offer contract to the lender.

·       Get title commitment and an appraisal.

·       Attain funding at ending.

Step 4: Searching Your House

You may have a perception that purchasing of house begin with rushing to the car and driving all over the town and somehow it is true that moving into the car to search is apparently the most exciting phase of the house purchasing process. However, driving around is merely a fun activity and the fun and amusement may fade instantly if weeks passes away without discovering your desired house. It is the reason behind we describe it as searching your house starts carefully assessing your needs, wants and values both in terms of long-term and short-term perspective. Following are the questions you must ask yourself:

·       What do I desire my house to be near to?

·       How much are my space requirements and why?

·       Which is more demanding: size or location?

·       Would I have an interest in a fixer-upper?

·       How valuable is house value appreciation?

·       Is neighborhood priority and stability?

·       Would I have an interest in a condo?

·       Would I have an interest in new house construction?

·       What amenities and features do I desire? Which do I really want?

Step 5: Make an Offer

You were merely a dreamer during your search of your dream house. Now when you are making an offer, you are required to act as a businessman. You are required to undergo this process with a cool mind and in terms of a realistic perspective of your market. The three most fundamental components of an offer are terms, price and contingencies. Terms are the timing and financial factors which may include within the offer. Price – the appropriate price to offer must appropriately reflect the actual market value of the house you desire to purchase. Your agent’s research of market will guide and address this decision. Terms further falls into six basic divisions in terms of a real estate offer:

·       Schedule – a schedule of actions and events which needs to be occurred before ending.

·       Conveyances – The items which remains within the home when sellers leave.

·       Commission – It is the real estate fees or commission for both the agents who work with buyers and sellers.

·       Ending Costs – It’s standard for purchasers to make payment of their ending costs but in case if you desire to roll the costs into loan, you are required to write it within the contract.

·       House warranty – It involves replacement and repairing of appliances, items and major systems. You may coordinate with seller to make payment for this.

·       Earnest money – It keeps the sellers protected from the chances of your unexpected pulling of the deal and making a statement regarding the severity of your offer.

Step 6: Carry Out Due Diligence

Unlike majority of your purchases, once you purchase a house, you cannot return it in case if something breaks or does not work as it was expected to be. It is the reason behind property inspections and house owner’s insurance possesses so much importance. A house owner’s policy keeps you protected in two ways:

·       Against damage or loss to the property itself.

·       Liability in case if someone undergoes an injury on your property.

·       The secret issues regarding the house must be exposed by property inspection so that you may actually know what you are going to purchase before the closing papers gets signed by you.

·       Structural damage is your major concern.

·       Do not gives priority to small things. Things can be overlooked which can be easily fixed.

·       You must bring in a specialist in case if you are having a major problem in terms of showing your inspection report. You might need to quit purchase in case of worst-case scenario.

Step 7: Close

The lender’s confirmation of the house’s values and legal statue as well as your consistent credit-worthiness is the last stage of house purchasing process. It entails a title search, appraisal, survey and final check of your finance and credit. Your agent will elaborate about postings of each if progressing but your work is nearly done. You merely have few pre-ending responsibilities:

·       Keep your finances under control.

·       Promptly return all paperwork and phone calls.

·       Communicate and coordinate at least once in a week with your agent.

·       Various days before ending, confirm all your documentation with your agent and make sure they are in appropriate order.

·       Attain certified closing funds.

·       Conduct a last walk-through.

·       As per the guidance of your agent and a settlement agent, you will sign the following documents and do the following things on closing day.

·       Paying to the seller.

·       Finalizing your mortgage.

·       Transferring the title from seller to you.

·       Making arrangements to have a legal record of the transactions as public record.

·       Paying your ending costs.

As long as you have appropriately followed directions and have cleared expectations, closing must be a consequential conclusion to your house searching process and ending of your house-owning experience.

Step 8: Keep Your Investment Protected

Throughout the duration of your house-purchasing experience, you have probably become familiar with your real estate agent as you have spent a lot of tie with him. There is no reason to put blame on trust merely because the deal has ended. In fact, your agent wants you to remain in contact with him. Your agent may still help you even after the close of your house purchase in the following ways:

·       Handling your first and initial tax return as house owner.

·       Finding contractors to help with remodeling or house maintenance.

·       Helping your friends and relatives to find house.

·       Keeping track of your house’s present market value.

·       Keeping attention on your house’s maintenance needs is significant in terms of ensuring the long-term protection values of your investment house maintenance further falls into two categories.

·       Keeping it clear and clean – Keep regular maintenance on your house’s systems depending on their style and age.

·       Looking after it – Keep your eye on signs of damage, leakage and wear. Fixing minor problems initially may save your huge money afterwards.