Home Buying 101: 10 Steps to Buy a Home
You have sat at the dining room table for hours on end crunching the financial data that forms the foundation for your decision to buy a house. Is number crunching all you have to do when it comes to finding a dream home in Lehigh Valley, Pennsylvania?
The answer is there is much more that goes into buying a home, and we present 10 steps that when followed in order, can help the home buying process go much smoother.
First Things First
Before you establish a budget, before you decide on the number of rooms, before you select a neighborhood, you need to check your credit score. Your credit report, which includes your credit score, largely determines the financing terms on the purchase of a house. Take advantage of a federal law that grants consumers one free credit report every year from Equifax, Experian, and TransUnion.
How Much Can You Afford?
This is not just about your current annual salary. You have to play a financial Nostradamus and predict how much you expect to earn 10, 20, and even 30 years down the road. Using an online mortgage calculator and plugging in the proper personal financial data should provide you with a window to determine how much you can afford.
Work with a Real Estate Agent
From negotiating price to developing a game plan for viewing homes, a real estate agent is an invaluable resource to have by your side throughout the home buying process. This is especially true for home buyers that are relocating to the Lehigh Valley, PA area. You can check online reviews, as well as ask for recommendations for choosing the right real estate agent.
Loan Pre-Approval a Must
Do you have to sit at a banker’s desk and wait anxiously to find out the result of a home mortgage application? Well, you can expect to wait for an answer, but the anxiety should not be anywhere near the banker’s desk if you have received pre-approval for a home mortgage. Pre-approval means your bankers reviews your credit information to offer an accurate assessment of your financial status.
The Search is On
After you have created a reasonable price range and discussed your options with a state licensed real estate agent, the time has come to start looking for your dream home. The Internet provides you with plenty of information regarding a potential new home, but nothing beats walking through a home and discussing it with a professional relator during an open house.
Submit an Offer
This is the step that typically ramps up stress levels for home buyers. However, since you already have a state licensed real estate agent on your team, lean on him or her to determine an offer that you can afford and the seller can accept as a sound starting point for negotiating the final price. After you submit the initial offer, let your real estate agent work his or her negotiating magic.
Conduct a Home Inspection
Not you, but a certified home inspector who conducts a meticulous inspection that reveals any previously undetected defects, such as a displaced roof shingle or a leak in the basement. This is also the step when you should decide where you want to put your appliances and furniture, as well as take measurements of doorways and windows.
Buy Homeowners Insurance
If you own your current home, all you have to do is contact your insurance agent to develop a new policy. First time home buyers have to shop around for a home insurance company. This is also the step to set up utility service for your new home.
Seal the Deal
As another home buying step that a real estate agent can help you complete, closing day is the day you sign all the legal and financial paperwork. An experienced real estate agent examines the fine print to determine whether there are any hidden fees and conditions.
We have reached the final step, and the step that makes you a homeowner: Moving day. Now, you have ended one adventure (home buying) and started another adventure (Home ownership).
Have a question about finding or buying a home in the Lehigh Valley, PA region? Email us today.
