The Process of Buying a New Home
As of May 2021, the annual rate for the sales of new single-family houses was 769,000. Not only are there plenty of new homes for sale, but the median sales price is $374,400, which isn’t so high!
Perhaps you’re tired of paying rent to numerous landlords and you’re ready to build some equity. In that case, it’s very likely that it’s time to become a homeowner!
It can be confusing and even frustrating trying to navigate a home purchase on your own. So if you’re interested in buying a new home soon, then you’ll want to read on. We’ll give you a great guide to help you out!
Set a Budget and Make a Wishlist
Before you dive into the home buying process, you need to sit down and determine what’s realistic for your situation.
The first thing you need to do is set a budget. Keep in mind that you’ll most likely have to overbid to get your dream property, so whatever your budget is, you might end up paying a bit over.
Also, you need to make a wishlist of what you want in your house. Of course, it’ll be tough finding a home that checks off everything on your list, but if you go into the search with a clear list in mind, you can determine if one item is unimportant enough to you that the purchase will be a wise decision.
Get Preapproved for a Mortgage
Chances are, you can’t afford a house outright. So you’ll need help with a mortgage.
You should apply and get preapproved for a mortgage before you start searching for houses. This way, you know exactly how much you can spend.
To apply for a mortgage, you need to submit key pieces of information, such as how much savings and investments you have. The lender will then get back to you about how much they’re willing to lend you. With this number, you’ll be able to narrow down your property search.
Now you’re ready to start searching! At this step, it might be wise to enlist the help of a real estate agent. They can take your wishlist and budget, then come up with a curated list of potential properties for you to view. This can cut out so much work on your part.
Plus, agents typically have insider information as to where the best homes and neighborhoods are. And what’s great is you don’t have to pay them anything until you actually buy a new house (they get paid commission).
View Potential Homes
Take your time to find properties that you like and schedule viewings or attend open houses. Pictures might tell you a lot about a house, but the only way you’ll know for sure if it’s right for you is to go see it for yourself.
It’s helpful to bring your real estate agent along to the viewings. While you might be struck by a home’s apparent beauty, they’ll have the expertise and eye to notice anything that might not be up to scratch.
During your viewings, feel free to test out things in the house. Run the shower and sinks to see how the water pressure’s like, and how quickly the water heats up. Open and close the windows and doors, and turn light switches on and off.
Take a look outside as well. How noisy is it and does the neighborhood seem safe? How’s the street parking like?
And lastly, think about the bigger picture. Is the new home located somewhere where you can easily get to and from work? Are there amenities nearby, such as restaurants, grocery stores, and parks?
Needless to say, don’t rush the process. Don’t be in a hurry to get into a new house, as this will cause you to overlook crucial details. Your agent can help you stay on the right track.
Make an Offer
Once you’ve made a decision, the next step is making an offer on a house. Again, an agent can be immensely helpful because they know exactly how to negotiate a fair price for you.
Should your offer be accepted, the house will go into escrow and you can complete the next steps of the home buying process.
Get a Home Inspection Done
Arrange for a home inspection in the next few days. This will tell you if anything needs to be fixed and if there’s any structural damage. This is a contingency that allows you to renegotiate or even withdraw your offer without being penalized, should there be any damages found.
If there are repairs needed, you can negotiate with the seller to have them done before you close. If you go this route, you’ll have to do a walkthrough before closing to ensure all repairs have been made.
Select a Mortgage
At this point, you might have several options for a new mortgage. Make sure you pick one that suits your financial situation best. It can help to speak with a mortgage advisor.
Close Your Home Purchase
You’ll meet up to sign all of the paperwork required to close the home purchase. Once you give the paperwork to your lender, you’ll receive funding within a few days.
After you’ve handed the money over to the seller, the house is then yours. Congratulations!
Get in a New Home Today
After reading this article, purchasing a new home should be a clearer process for you now. If you’ve saved up enough and are ready to make the transition from renter to homeowner, then the next step is to start exploring your options and do some research. We wish you luck and hope you get into a new house soon!
For more advice on buying a new house, read more of our blog posts now!