Renting a home may seem simple. However, renters are often stuck with the rules of their landlord and unable to make changes to their home to create a more comfortable environment. With the costs of rent constantly increasing, it may become more of a hassle than it is worth.
This is why many people decide to purchase their own homes. It allows them the freedom to create a living space that reflects their individuality and comfort. Unfortunately, many people are hesitant due to the unfamiliarity of the process and the fear of making such a major investment. However, buying a home is not as difficult as it may seem.
Preapproval
The first step in the home buying process is getting preapproval from a mortgage company. Companies, such as DollarBack Mortgage, offer competitive rates and an easy application process to help individuals get the preapproval they need to begin the process.
The first part of this preapproval is the process of individuals determining how much they can afford on a house. Individuals should gather bank statements and pay stubs to determine the money they have available to spend on the house. A mortgage lender will assist in determining that amount and getting preapproved for a mortgage.
Finding a Home
The next step in the process is finding a home. This can be done by exploring various listings for houses for sale. Some individuals prefer working with a realtor. A realtor will seek out homes that meet the specific needs of the potential buyer within their price range.
Before visiting any homes, it is best to determine where the home needs to be and exactly what is needed in the home. Potential buyers can even make a list of the various features they would like in the home but can live without if necessary. This will help the realtor find the best options to meet their needs.
Once a home is found that suits the needs of the buyer, it should be visited. This can allow the buyer to really get a feel for the home and determine if it is the right fit. Once the home is found, a tentative offer can be made. If the buyer accepts the contingency offer, the next steps in the process can be made.
Home Inspection
The next step in the process is to have the home inspected by a professional home inspector. The home inspection is really important because it allows the potential buyer to really know what they are buying. Buying a home is often the biggest investment a person will make. It is a good idea to know what is really being bought without being surprised after closing.
A home inspector will visit the house and perform a visual examination of the home’s structure and major systems in the home. They will inspect the home from the foundation to the roof. This inspection can take anywhere from 2-4 hours, depending on the size and condition of the home.
A standard inspection will provide information about the condition of the home’s heating and cooling system. It will also include information about the plumbing and electrical system. The inspector will also report on the roofing, visible insulation, walls, floors, ceilings, windows, doors, and the foundation.
The inspector will note any damages or issues found throughout the house. They will also identify any unsafe conditions. Often, the inspector will make a list of needed repairs to make the home safe and comfortable.
This inspection allows homeowners the ability to have a better understanding of the house they are purchasing. It also allows them the opportunity to rescind their offer on the home if the house is in a poorer condition than they were led to believe. However, if the home is in good condition, they can move on with the buying process.
Homeowner’s Insurance
The next step in the home buying process is to purchase homeowner’s insurance. Although it is not legally required, homeowner’s insurance is a great safety net for any homeowner. In addition, most mortgage lenders require this insurance to protect their investment as well as the home buyers.
Homeowner’s insurance provides a great deal of protection for homeowners. It will cover much of the costs in situations where the home is damaged due to fire, storms, or even theft. It can even offer liability protection for the homeowner and those living in the home.
Liability protection covers when someone is injured on the property. It can even help cover damages to another’s property caused by the homeowner or their household members. This insurance provides needed protection for the great risks that come with owning a home.
Home Warranty
Optional protection home buyers may want to consider a home warranty. Purchasing a home can be a very costly process. When the purchase is complete, many homeowners have already stretched their budget to the limits. A major cost, such as a home system or appliance breaks down shortly after moving in, could have dire consequences.
A home warranty provides protection in this situation. If a major system or covered appliance in the home breaks down, repairs or replacement of that item is covered by the warranty. Homeowners simply pay their set fee as per their service contract. This could be a great benefit, especially for the first year in a new home.
Closing
At the end of the process is the closing. This is where the mortgage is finalized and all down payments are made. This is also where the deed to the home is transferred from the seller to the buyer. This closing makes the entire process official. At the end of the closing, the home buyers become homeowners.
Often, this process can seem intimidating for those unfamiliar. However, it is often a pretty streamlined process. Homebuyers will meet with the necessary legal representatives to sign the mortgage papers and other documents. Not only will the down payment be paid at this time, but also the closing costs, taxes, and insurances will be covered here.
Once the closing is complete, the new homeowner can now move into their new home. Even though the process may have been long and frustrating, homeownership is well worth it in the end.
