Buying a house can often feel like navigating a maze. From preparing finances to closing, the process of how to buy a house is filled with challenges and decisions.
Whether you’re a first-time or a seasoned buyer, we’ve got you covered. We’ll share 15 steps to buy a house answer questions you’re probably wondering about like:
- How long does it take to buy a house?
- What is the first thing to do to buy a house?
- How much money should you have before buying a house?
1. Understand Your Finances
So, what’s the very first thing you need to do before you buy a house? Assessing your financial health. A good credit score opens doors to better mortgage rates, making it an important factor in the process of how to buy a house.
Equally vital is determining your budget. Make sure to set aside enough money for the down payment – at least 10 to 20% of the sales price and 2-5% of your loan amount for closing costs.
2. Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage loan is a must when you’re going through your steps to buy a house. This process involves a lender evaluating your finances to determine how much they’re willing to let you borrow. Pre-approval is crucial as it gives you a clear budget range and strengthens your position in negotiations.
3. Create Your Wishlist
Start imagining your dream home and all that comes with it. In the process of how to buy a house, creating a wishlist involves identifying your must-haves, like the number of bedrooms, and nice-to-haves, such as a home office. Consider factors like location, property size, and type, ensuring your wishlist aligns with your lifestyle and budget.
4. Start Your Search
Now the real fun begins! At this point in the process of how to buy a house, you can now kick off your house hunt. Starting your property search is an exciting phase in how to buy a house. Utilize online resources and collaborate with a real estate agent to find listings that match your criteria. A combined approach that leverages technology and professional expertise will streamline your search for the perfect home.
5. Visit Properties
Once you’ve rounded up a list of homes that interest you, it’s time to see them in person. Schedule and attend open houses and showings to get a real feel of the spaces. Pay attention to the property’s condition, layout, and potential during these visits.
6. Research the Neighborhood
You might love the house, but do you love the neighborhood? Researching the neighborhood is another super important piece in your home-buying puzzle.
Evaluate local amenities, school districts, and commute times. Additionally, consider any future development plans in the area, as they can impact your property’s value and lifestyle compatibility.
7. Make an Offer
By now, you’ve determined that the house is great and the neighborhood is top notch. Now we’ve come to perhaps the most critical part of how to buy a house: putting in your bid.
Research recent sales of similar properties to gauge a fair price. Be prepared to negotiate, considering factors like the home’s condition and market demand. A well-thought-out offer can lead to a smooth negotiation.
8. Secure Financing
Has your offer been accepted? Congrats! Your next move in how to buy a house is to secure your financing. Explore different mortgage options to find one that suits your financial situation. Understand the terms, including interest rates and loan duration. (Tip: use our mortgage calculator to get a sense of what financing might look like for you.)
9. Home Inspection and Appraisal
On the path to home ownership, a thorough home inspection is a step you don’t want to skip. It identifies potential issues that could require costly repairs. Meanwhile, an appraisal, required by lenders, determines the home’s value, affecting your mortgage terms.
10. Enter Escrow
In this next phase of the home-buying process, a neutral third party safeguards documents and funds. Their job is to ensure that all conditions are met before finalizing your purchase. This stage involves reviewing key paperwork and paying off your closing costs.
11. Do a Final Walkthrough
We’re almost at the finish line of how to buy a house. The final walkthrough ensures the property’s condition is as agreed upon. Check for any unresolved issues or changes since your last visit. This is your last opportunity to address concerns before the property officially becomes yours.
12. Close the Deal
If you’ve made it this far, you’ve arrived at the big finale. This step marks the culmination of your home-buying journey. It’s when you get to sign the final documents and officially transfer ownership into your name. Once completed, you receive the keys to your new home.
Your Path to Homeownership Made Clear
The process of buying a house typically can take a while, usually around 30 to 45 days from the moment an offer is accepted to closing. Buying a home might get overwhelming at times, but it’s worth it.
If you seek personalized guidance and expert advice for how to buy a house, we’re here to help. Contact a real estate agent with Movoto who can support your journey today
