The process of buying a home can seem daunting, with seemingly so many steps in the property purchase procedure and responsibilities that go along with home-ownership, you may feel intimidated even if this isn’t your first home purchase. However, the process doesn’t have to be complicated. Here is a simplified version of the process of buying a home step by step. Read all 10 steps to home-ownership to learn how to easily buy your next home.
1. Check your credit score
The first step in the process of buying a home is to check your credit score. There are several companies that can provide you with a free credit score, like Annual Credit Report who will provide a free credit score annually. Many credit card companies will also provide your credit score. The range of credit scores is from 300 to 850. The higher your credit score is, the better the loan you will qualify for later in the property purchase procedure.
2. Figure out your budget
The next step in the property purchase procedure is to figure out your budget. You need to calculate how much you can afford to pay on your home each month. Find a mortgage calculator that you like to help you calculate costs. You will need to remember to factor in a down payment, closing costs, and other fees that may be associated with the property purchase procedure. Additionally, budget out the money necessary for furniture or remodeling.
3. Get pre-qualified for a mortgage
Once you have a budget planned out, one good thing to consider in the property purchase procedure is to get prequalified and pre-approved for a mortgage. To get prequalified, you will need to visit with your banking institution or mortgage banker.
The bank will review your income, savings, and investment information and give you an estimate of how much they can give you in a loan. You should talk to several mortgage lenders and ask lots of questions before choosing one that you like the best. This will help confirm your financial status and will solidify the price range you should be looking at. Additionally, it will make the sale go more quickly and smoothly once you find your dream home. McArthur Homes has a list of expert lenders who would be glad to help you finance your Utah home.
4. Find a real estate agent
Real estate agents can help you through several of the property buying steps. They can present different housing options, guide you through the process of buying a home, and provide information about school systems and neighborhoods. Real estate agents are paid on commission based on the sale of a home, so they are free for you to use.
5. Start looking at homes
Once you have a real estate agent, it is time to look at homes. Look at homes that are in your price range. Taking a list of things you cannot live without into a home search is also a good idea. Take notes on whether or not the homes you see have said features. These notes will also help you remember what you liked and didn’t like about each home when you need to make a decision. Here are some questions that you may want to consider:
- How many bedrooms?
- How many square feet?
- Do you need lots of closet space?
- Would you like a big yard?
- Is it close to your work?
McArthur Homes has many tools online so that you can find the perfect Utah home.
6. Make an offer
The most exciting part of the process of buying a home may be placing an offer on one that you like. Many sellers will put the price of the home a little bit higher since they expect that some negotiating will occur. A good offer is typically 5% below the asking price. Your real estate agent will be able to help you determine what your offer should be. And your offer may not be final. The home-owners may counter you with another offer until you agree on a price.
7. Have the home inspected
After you have made an offer, it is important to get a home inspection of the property. A home inspection will reveal structural damage around the home and other things that may need to be fixed. Your offer is typically contingent on the home inspection, meaning you can renegotiate your offer if there is damage in the home.
8. Get a mortgage
The next step of the property buying process is getting a mortgage. You should work with your mortgage banker to get a loan. You should be aware that there are several different kinds of home loans:
- Adjustable-rate mortgages: These are short-term mortgages that offer one interest rate for a short amount of time (typically between 1 and 7 years). The interest rate changes after that amount of time is up, going up or down depending on the success of the market. This option is good for people who don’t plan to live in their home for an extended period of time.
- Fixed-rate mortgages: These mortgages have fixed interest rates over 15 to 30 years. These mortgages provide stable, monthly payments and are great for people looking to live in a home for an extended amount of time
- Interest-only mortgages: Fixed-rate and adjustable-rate mortgages can have interest-only payments. These payments allow you to pay just the interest on your home for a certain period of time. This allows you to save the principal payment if money is tight.
9. Close on your home
Your real estate agent will help you with all of the paperwork associated with the process of buying a home. Closing the sale will typically include loan documents and signing of other documents. It may take a few days for your loan to be funded once you have filled out the paperwork. There may be other costs involved in closing such as down payment or other fees.
10. Move in
Once the paperwork is signed, it’s time to move in! You have successfully completed the property purchase procedure. So choose a moving service, or utilize your friends in the area to get all of your stuff situated in your new home.
For any questions about steps to buying a property in Utah, contact McArthur Homes.
