Home Buyers Guide: The Essential Steps To Buying A Home From Start To Finish

The steps to purchasing a home of your own.

The time has come when you feel ready to purchase your own home. The prospect is an exciting one, but maybe a bit confusing too. I hope to make the whole process less confusing by going through the entire process, step by step.

First, you need to ask yourself if you are ready for the responsibility of owning a home. Do you have a stable source of income? Ate you in a position to handle the cost of any major repairs that may come up? Can you manage the yearly taxes? You need to check your credit history and rating. Knowing these will help you determine if a bank is likely to give you a mortgage loan.

The next step is finding out how much you can afford to spend on a house. Most banks suggest you spend less than 29 percent of your monthly gross income, that is the amount before taxes, on your monthly payment. This would be a good time to get a pre-approval for the mortgage. You will have a better idea on what price range you are looking in.

Once you have the pre-approval and have narrowed your price range, it is time to create a wish list of what you want in a home. Decide the minimum amount of rooms, location you like and other details that you want in your house. Be clear on what details you are willing to compromise on and which ones are necessary.

Once you know what you are looking for, start researching and picking out a real estate agency. Going through an agency can help you find houses quicker and aid in the legal work involved in buying a house. Make certain the agent you get is licensed in your state and has experience. Tell your agent exactly what you are looking for. This will help ensure a more likely match as well as save time for both of you by eliminating the need to see homes that do not fit your expectations.

You have been through all these steps and have found a house you are interested in. The excitement will be high at this point, but try not to allow it to cloud your judgment. There are still important details to be taken care of to make certain your home is all you hope for.

You now need to have the house inspected. Have plumbing, heating and electrical system all checked. Check for molds and mildew and cracks in the foundation. Make sure the roof doesn't leak. Have the house checked for any signs of termites and other bugs. Two extremely important tests are those for radon gas and lead paint. If all these turn out fine, you need to find out what the house is worth by having it appraised. Then, it is time to make an offer to the seller.

Once the contract terms are settled on and everyone agrees on who is to pay for what, the amount of the down payment, and all the little details of the sale, you will need to buy homeowner's insurance. This is a necessary requirement made by most banks.

Now there will probably be a wait while all the paperwork is put in order and finalized. Once this is done, there will be a closing. This is when everyone involved in the sale gets together and signs the final contract. There will be things that need paid at this meeting. A real estate agent will let you know what needs paid and how much you will need to bring to the closing.

The papers are signed and there is only one final step, moving into your new home. Hopefully, if you have gone through all the previous steps, you will have a home that will make you happy for many years to come.

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