Steps to Buying a Home
Buying a home for the first time is one of the largest investments that the average individual makes throughout their lifetime, which means that the decision cannot be made lightly. In fact, first-time home buying involves a significant amount of preparation and self-education in order to ensure that the commitment is indeed the right decision.
A successful home buying process hinges on a list of questions that every prospective homeowner should be able to answer, including:
Am I ready for the financial responsibility of buying a home?
The first step to the purchase involves making a series of calculations to determine your current financial situation, which will help you determine the price you can afford without significant monetary strain. You must consider not only the down payment and regular monthly payments but also the costs of potential home maintenance that will likely arise.
Next, it is crucial to set up a meeting with your bank in order to get pre-approved for a mortgage, as you and your lender may not be on the same page regarding your financial situation. The lender will base their decision on your credit history, your income, and a variety of other factors.
Do I need a real estate agent?
A real estate agent is a highly qualified and knowledgeable individual who will play a critical role throughout your buying process. Acting in your best interests, they can narrow down the ideal homes based on your distinct needs and preferences, including the target area, the home’s features and other details, using information that is not available to the general public.
Once the home has been chosen, your agent will perform the negotiations on your behalf to ensure a profitable purchase based on the prices of comparable homes in the area as well as current trends in the real estate market.
Do I need to perform a home inspection?
Hiring a professional to perform a meticulous home inspection is the buyer’s responsibility, allowing you to eliminate risk of surprise repairs that could cost thousands of dollars in addition to what you are paying for the home. Furthermore, the findings of the home inspection will provide you with the contingency to renegotiate the price of the home, request any necessary repairs to be made by the seller, or withdraw your purchase offer entirely.
Once you make a preliminary offer to the seller, your real estate agent will help you arrange for the home inspection.
How do I finalize the purchase?
Finalizing the purchase is the most complicated phase of the acquiring a new home. Steps include obtaining final approval from your mortgage lender, transferring ownership to the buyer, and a variety of other paperwork prior to closing the deal and signing the purchase contract.
If you are looking to buy a home in Denver, CO, or nearby areas, your local real estate expert Laurie Middleton Mann is only one call away. You can reach our office by phone at (720) 320-4977 or by completing our online contact form, and we will gladly help you help you find the home of your dreams.