The Complete Guide on How to Buy a House

buy a house

A recent survey found that more than 10% of people in the United States have moved homes within the past year.

The COVID pandemic made many people reconsider where they live and what they want for their future. If you are hoping to buy a home soon, make sure you know the steps to get it done.

Continue reading to discover all of the best steps to take when you go to buy a house in 2021!

1. Start Browsing

The first step to take when you buy a house is to start browsing.

This is the best part of home searching because you can look at all of the options and start thinking about what kind of home you want. Many people recommend using apps like Zillow or to view homes in your desired area.

You can also start browsing homes by driving around neighbourhoods that you are interested in. Grab a paper and pen and write down the addresses of homes that stand out to you. Once you get home, you can look up the price of the home and the seller’s information.

Begin thinking about your budget as you look at homes. You more than likely have an idea of what you can and can’t afford just based on your income.

2. Discuss Your Budget

Searching for homes is fun but can be discouraging when you finally realize your budget and the options are limited.

Take time to talk with your partner and review your financial statements. This will help you determine how much you can afford. Many online sites offer estimated monthly payments for homes, so compare them to your current payment.

If you are anticipating a raise at work, make sure that you don’t make any commitments until your payment is confirmed. The bank will ask for information about your finances, so start gathering it now.

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3. Get Pre-Approved

Buying a house with bad credit isn’t an impossible task but you must ensure that you are pre-approved for homes you are interested in.

Pre-approvals are necessary because they help determine how much a lender will be willing to loan you for a mortgage. Pre-approvals have a lot to do with your credit score and financial obligations.

Even if you get pre-approved, your loan will still have to go through a formal approval process before processing a sale. In most cases, if you have no problem getting pre-approved, you will have no problem at closing.

Be prepared to fill out a decent chunk of paperwork at this stage, it is a lengthy process but it will help you prepare for your new home.

4. Get a Real Estate Agent

Now that you have gotten your finances figured out and you have begun looking at homes, it is time to get a real estate agent.

A real estate agent will be able to assist you with selling your current home and purchasing a new home. They have the most current information about houses on the market and can help you find what you are looking for.

It is the job of the realtor to keep things on track and moving forward. Work closely with the agent to get the most for your money.

5. View the Homes

Once the real estate agent has gotten involved, chances are you will have plenty of houses to view.

Your real estate agent will be able to take you on tours of homes throughout the week. While walking through the homes, imagine yourself living there. Ignore paint colors on walls and carpet colors, as these things can be easily changed once you move in.

6. Know the Difference Between Want & Need

Knowing the difference between wants and needs is crucial when you go to buy a home.

If you know that you need a one-story home so that there aren’t any stairs, make this a priority in the home you choose. If you are wanting and hoping for a house that comes with a hot tub, don’t ignore a great option that doesn’t come with one.

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Most people base their needs on how many rooms they need, if the home has a backyard, and if it has a basement for storage. Write down a list of your wants and needs to help reference when choosing your new home.

7. Make Your Offer

The hard work and searching have paid off and you have found the final homes that you are interested in.

If you are serious about buying a home, talk to your realtor so that you can make an offer. With the real estate market going the way it has been this year, don’t be shocked if your first offer is passed on.

Don’t get discouraged if your offers aren’t accepted by sellers. You can always make counter-offers on homes that you are really serious about getting.

8. Close on the Home

When you go to close on your home you will want to work with the best title company in your area.

Your real estate agent will help walk you through the process of closing and make sure that you don’t miss any details. When you are closing on a home, be prepared to make multiple offers or amendments to your deal.

If you expect the current homeowners to fix something before you move in, make sure that it is clearly identified in the paperwork. Throughout the closing process, you will have to work with your bank to get mortgage approvals and money transfers.

How to Buy a House in 2021

Figuring out how to buy a house can be overwhelming if you don’t know where to start.

Most people begin by looking at homes by driving around or online. There are many ways to view a house and you should get preapproved before committing.

Once you have discussed your wants and needs it will be easier to determine which house is right for you. Don’t get discouraged from all of the paperwork at the end, the home will be worth it.

Be sure to check out our blog for more articles about the best time to buy a house and other real estate needs!