Buying a house is exciting and stressful, in equal measure. It can be complex and overwhelming if you don’t know what you are doing. So, here is an overview of what to expect from the house buying process.
Step 1; Prepare your budget and get your finances in order.
First, you want to ensure you know how much you have to spend on your property. It’s all very well looking at expensive homes for sale but if you can’t afford them it is a pointless exercise. You will need to have a cash deposit of around 10% of the purchase price and extra funds for the associated fees of purchase. Fees such as legal expenses, insurances, and realtor fees. You will also need either cash funds available for the purchase price or a mortgage in place. In order to obtain a mortgage, you will need to have a strong credit history and be able to substantiate your incomings. You will want to make sure you know your budget and are confident that you will be able to obtain a mortgage before proceeding to the next steps. It is recommended you get pre-approved for a mortgage before you start making offers on properties.
Step 2; Find your property.
Be realistic in your property search. Ensure it is within budget and ticks all the boxes you want. Is the location right? The layout? The number of bedrooms? If you have to compromise are you sure it is a compromise you are prepared to live with? Save yourself time and effort by only looking at houses that are within your budget and meet your requirements. You can refine your search options when looking online and ensure that your realtor only shows you properties that fit your bill.
Step 3; Make an offer.
Once you have found the property of your dreams it is time to make an offer. Sellers are generally represented by a realtor so you may want to consider hiring a qualified broker or realtor to negotiate on your behalf. You will also want to ensure you have professionals representing you once an offer has been accepted so that they can fully explain the contract and legal requirements that ensue.
Step 4; Checks and surveys.
Your realtor or legal representative will assist you in ensuring you carry out all the necessary surveys and inspections on your prospective property. These surveys come at a cost but will help identify any issues with the property that you need to be aware of and may provide you with room for further stipulations to be included within the conditions of purchase, or even force you to reconsider the purchase altogether.
Step 5; Pay your deposit.
Once all surveys are completed and all parties are satisfied with the conditions of sale both the buyer and the seller sign a contract, which agrees on a closing date. It is also at this point that the deposit of the purchased property is paid. Should you walk away from the purchase at this point you risk losing your deposit.
Step 6; Closing.
It is now that you will be required to pay any outstanding fees, closing costs, and the remaining purchase price of the property. You will also sign and review all relevant documentation. On the pre-agreed closing date, the property will be transferred to you, the buyer, and you will officially become the owner and are free to move in and make your house a home.