Buying your first home is a life-changing experience and the process can be every bit a daunting one. Once you have made the big decision, you’re suddenly out in uncharted waters. You don’t know much about the home buying process, and naturally, it may seem like a lot of work to figure out where to start.
So if you have made that important decision, and have jumped into uncharted waters, we have all the important information that you would require at this critical stage that will help you navigate through the world of real estate.
Start by Figuring Out Your Budget and Priorities
Before you even start looking at your potential homes, you must be clear on your budget. Once you’ve done that; then begins the balancing act.
A dream home for you could be a lot of things in one: a well-furnished place a few steps away from work or maybe a place in the central part of town with a quiet and calm locale.
But it all comes down to what your budget is, and this helps you decide what features in a home you would prioritize. So start by making sure that you’ve been pre-approved for a mortgage and knowing what your budget entails. Otherwise, you’ll be wasting a lot of time and energy looking at houses that you cannot afford at the moment.
Be Smart with Your Down Payment
The higher the amount you pay upfront as down payment, the more convenient your mortgage costs will be. Work out how much you can manage as down payment while factoring in all the additional costs that are associated with the home buying process.
Factor in the Real Costs
There are costs in the home buying process other than the cost of purchase. Therefore, do consider all these other costs before you decide to spend all your mortgage money on the purchase of a home. Some of those other costs to consider are:
- Closing costs: miscellaneous expenses/ fees required towards the end of the purchase making up around 2-5% of the total cost
- Renovations: depends on the condition of the house
- Insurance policies: usually required at the closing stage and you know the premiums have to be paid in advance
- Inspection fees: can cost anywhere between $200 and $500
Finding a Professional
Buying a house is a tedious process that you don’t have to go alone. That’s where a real estate agent comes in. They assist with the whole process by working with the buyers and the sellers, have a thorough knowledge of the market and know the process inside and out.
Such professional help by your side can ease the process for you all the way to the end. So find a professional you can trust. Often, word of mouth is a credible way to go by when deciding on a broker or real estate agent for you.
Making an Offer and Closing
So you’ve set your eyes a potential future home. The realtor will provide you with a comparative market analysis that will help you make a fair offer. Alongside the market analysis, you must also think about whether it’s a buyer’s or a seller’s market, and consider things such as amenities in the property to reach a fair offer price.
Then comes the final stage in the process called closing, which itself is a set of processes and activities that can take about 4 to 6 weeks. This is where closing costs are incurred. Proof of insurance, photo ID and a lot of paperwork later, you will finally become the owner of your new home.
With all this information, you’ll have a general course of direction when setting out on your first ever home buying journey. If you’re looking to buy or sell property anywhere in Orlando Florida, visit Megan Dowdy Realty to make the process seamless for yourself.