Top Steps To Prepare For Buying A House In 2018

The process of buying a home can be scary, owing to the process and commitments involved. But going through the preparatory stages enlightens you on how best to go through each stage. Buying a house can be a big and marvelous investment. It is, therefore vital to prepare yourself adequately for this process. This guide will take you through the basics of what you need to know now in order to buy a house in 2018.


Top 7 steps To Take In Preparing to Buy a House

  1. First Re-evaluate your finances

Your lenders will leverage your credit reports to decide whether they will finance your project or not. So, be sure to ask for a credit report from one of the major local credit bureaus. Once you receive the credit report, scrutinize it closely and fix any errors that you might find.

Lastly, check your credit score with platforms such as (ahead of time) to determine if you will likely be granted a mortgage and at which likely rate.


  1. Set a budget

Your budget will largely be dependent on your gross annual income. It’s good practice to go for a home that costs about 2.5 times your annual gross salary. You can combine forces with your partner to increase your spending power, as well as be in a position to go for a more costly home.


  1. Visit a lender

Depending on your credit score, lenders will help you choose between adjustable-rate mortgage and a fixed-rate loan. You may also ask the lender to preapprove you in preparation for the actual buying process.

As a cautionary measure, you may want to get pre-underwriting, which is basically a review of the documents you will use when you are actually buying the home. Some of the documents will include Paycheck stubs for the past few months, W-2 forms and tax returns that date around two years back.


  1. Seek out prospective homes

Now that you’ve got a budget at hand, start shopping around for a prospective home and find out if they fit your preferences.  Be sure that your real estate agent is knowledgeable and professional..

If you come across a property you are interested in, ask about the following;

– The duration that the home has been on sale;

–  The home’s pricing against the neighborhood.

–  Verify copies of insurance, utility and tax fees. This will help you unearth any possible hidden costs.

–  Likewise, ask about past transactions on the home as it can give you hints on whether the house is lowly or possibly overly priced.


  1. Source for a down payment and closing costs

Down payment can go as low as 3 % if you opt to go with FHA programs to highs of even 28 % for ordinary lenders. For a smooth transaction, be sure to save up for the down payment and the closing costs. Potential sources of finance for a down payment can include borrowing from your 401(k) plan where you can borrow up to half your savings. Duly verify this action before you make it though.


  1. Take time to re-evaluate the offers at hand

Once you’ve gone through the processes, you need to settle down and think over the investment. Most agents will certainly create a sense of urgency by pressuring you into buying. By delaying the buying, you’ll have a chance to learn more on the properties from neutral sources and you may even get a chance to negotiate for a discount.


  1. Make your move

Once you are convinced this is the preferred home for you and is the best deal you can get, go ahead and kick start the purchase process. Be sure to keep consulting those who are acquitted with the process so that everything turns out smoothly. A great real estate agent will able to make this as smooth for you as possible.


Bottom line

The process of buying a home can be scary due to the process and commitments involved. Nonetheless, going through the preparatory stages enlightens you on how best to go through each stage.


If You Are Considering Buying, Let’s Talk About What’s Available In Charleston Today.