The things that run in your head are as big as the house you are looking forward to calling your home. You can’t wait to take a tour and see the neighbourhood. But after the excitement of touring and cherry-picking the best property, you are left with the biggest decision of whether to buy it or not. What’s the next step? How long will it be before you are holding the set of keys and opening the doors of your new home?
As a first-time homebuyer, you need to know the basic steps in buying your very first home. Consider hiring a home value estimator to guide you in making an offer—they are one of the few professionals you will need to consult with during this process.
Below is a checklist of what you need to look into before making the final decision.
Work With an Agent or Realtor
It is wise to get a realtor on your side to help you narrow down your choices and find the right home for you. As experts in buying and selling properties, realtors can guide you through choosing a house and all the complex steps involved in the process of buying it.
What’s best with having a realtor with you is you are assured that your best interest is their priority, and your budget preference is at the top of their list!
Decide on Your Budget
You need to determine how much you can afford by identifying your debt-to-income (DTI) ratio. This is how lenders gauge your ability to pay back your mortgage loan. Basically, your amount of debt is compared to the amount of your income.
You can calculate your DTI ratio by getting the sum of your current monthly expenses such as rent, loan payments, credit card dues, etc. Your monthly payables that vary in amount should not be included in the sum. After getting the sum, divide it by your total monthly pre-tax income. If you have a high DTI ratio, you may have a difficult time getting your loan approved.
Partner with a Mortgage Lender and Secure a Preapproval
Now that you understand your DTI ratio, the next step is to partner with a mortgage lender and get preapproval for a mortgage loan. When your loan is preapproved, the negotiating process with your potential seller will go much more smoothly!
Search for Your Home
You can now get to choose a home based on your working budget. You can ask your realtor to look for homes for you or suggest some properties and schedule you for a view. When viewing a property, don’t be content with just looking at the house superficially. Check its parts to see if they are working well. Test the electrical system, check the plumbing, ask about the roof’s condition, you know the drill.
Make an Offer
If you think you have found the one, make an offer. This is tricky, as it can be hard to gauge the exact amount you will offer. This is where your realtor steps in. Realtors usually compare sales data and other property values to help you come up with a reasonable price offer. Your realtor will take care of presenting the offer to the seller.
Get a Home Inspection and Appraisal
When the seller agrees on the offer, the house is yours! The next step is to conduct a home inspection to check the property from top to bottom and an appraisal to get an estimate of your home’s value.
The last part of the process involves the signing of documents for your mortgage and all legal papers. After a successful property title transfer, you can now move into your dream home!
Arming yourself with the correct information when house hunting is the key to finding your dream home. The steps mentioned above will surely do you good in your quest for your home. So, choose wisely and seek the help of a realtor to help you make sound decisions.
Buy or sell a commercial property with the help of a realtor. Chris Low is here to help. Whether you want to see a listing in person or just have a simple question, you can contact me at any time. Reach me through email: email@example.com or phone at (204) 573-5699.
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