A house is one of the most important purchases you will ever make in your lifetime. That’s why it’s important to consider all aspects of your investment before choosing which property to get. Usually, a broker will help you find the home of your dreams. But if you want to fly solo and get a house on your own, then consider this simple step-by-step guide how:
Step 1: Get as Mortgage Pre-Approval
Unless you can pay a house in cash then you may skip this step. Most buyers need secure financing before they can go house shopping. A pre-approved mortgage will specify exactly how much loan you are qualified for and that leads to the kind of house you can afford. The amount of the loan you get will depend on your financial standing or credit score. A pre-approved mortgage will come in handy once you start negotiating with the seller.
Step 2: Start House Shopping
There are many ways to get leads to start your house shopping. You can check classified ads for homes for sale or follow social media groups for tips and leads. If you’re getting your leads from classified ads, you’d have to call the seller for a private viewing. If you’re following social media groups, house pictures are typically included in the ads.
You can also get leads from websites that offer broker-free houses. The ads have all the information you need to assess the property. Of course, nothing beats personal assessment so you need to visit each house to see the property yourself.
Step 3: Evaluate the Property
Once you start checking every potential home, ask the seller about the property’s worth. If you’re interested in making a deal, decide how much to offer for the house. You can do that by making an independent assessment of the property by hiring an appraiser. For a fee, an appraiser will check the value of the house and provide all the documents required by your mortgage lender. You can also use online tools to estimate a property’s value.
Finally, you can also obtain a comparative market analysis or CMA to assess the structure of the home, the surrounding land as well as the neighborhood. CMA will also provide an accurate figure of the actual value of the property in the current market. There are various websites that offer DIY CMAs online.
Step 4: Get a Real Estate Attorney
Once you decided on a specific property and you’re ready to make an offer, you need to hire a real estate attorney to handle the documents and develop the sales contract. The real estate attorney will draft the legal document and will present your offer to the seller.
After making an offer, you can negotiate if you want but in the end, the seller and yourself must come to acceptable terms before turning over the property to you. If the seller accepts your offer, then both parties will sign the contract. The contract will be submitted to the mortgage lender. From there, the lender will process the mortgage and schedule your closing.