Buying a house can seem complicated, but it's easier than you think. Here's how to buy a house in 10 steps.
1. Decide on a Budget
The first step to buying a home is to examine your income and outgoings and work out how much you can afford to spend. If you need to borrow money to help purchasea property, you can apply for a mortgage—here are some documents you'll need.
2. Research Your Mortgage Options
If you need a mortgage, contact lenders or mortgage brokers for advice on your options. Be sure to compare loan estimates from several lenders to find the right mortgage for you.
3. Seek Pre-approval
When you find a suitable mortgage, seek pre-approval from the lender. This can help boost your confidence in your ability to buy a home.
4. Find a Realtor
Before you begin house-hunting, hire a realtor to help with your search. Ask your friends and relatives for recommendations, and browse online realtor finders and review sites to find the right realtor for you.
5. Search for a Property
Prepare a list of your requirements and then work with your realtor to find properties that meet your needs. When you find a home with potential, arrange a viewing.
6. Make an Offer
If you see a property you want to buy, make an offer to the seller. When deciding what your offer should be, speak with your realtor for some advice, as he or she will have knowledge about the home values in the area. If your offer is accepted, you must pay a deposit.
7. Arrange a Survey
Arrange a survey to check the property for any defects that may affect its value. If the survey reveals significant defects, you can renegotiate or withdraw your offer without financial penalty.
8. Coordinate the Legal Paperwork
If you wish to proceed with your purchase, instruct a title company to start the legal work necessary to transfer the property into your name.
9. Finalize Your Mortgage
Contact your lender to finalize your mortgage application. Be sure to check the terms of your mortgage to determine whether you need to arrange an appraisal and purchase title insurance.
10. Close the Sale
Sign the paperwork required to close the sale and pay any required closing fees. The money for the home will then be transferred to the seller and you'll become the legal owner of the property. The seller will hand over the keys and you'll be able to move into your new home!
Buying a home is a major financial milestone, so it's vital to approach the process correctly. By following these steps, you can improve your chances of finding a home you'll love living in.
