How to buy a house in 2020

Buying a new house is one of the most exciting yet challenging to do for everyone. Many people have been through the process but have not really had the hang of. I have put together 10 steps to follow when buying a house. They might not be detailed and very specific but I will try and break down them for you as much as I can;

  1. Check your credit score; this is mainly important if you are planning on getting a mortgage. In order to qualify for a mortgage, you need very good credit scores. When you get your credit report, it will lo good and fit for a mortgage only if you have been paying your bills on time, if you are debt free or have no credit card debts
  2. Figure out your budget; you need to figure out much you are comfortable spending and how much the bank is willing to lend to you. However, you might not want to borrow despite the fact that you can easily obtain a loan from the bank. Think about what you want to do when you move into your house in terms of up scaling, buying furniture, decorations, and make overs among others.
  3. Start saving; after establishing what you have and what you are willing to spend, start saving up for it. This will come in handy if you do not have enough money to purchase the house and are not willing to get a mortgage. The savings will help you have enough money for the down payment and closing costs. Do not forget to set a deadline for the savings and a weekly or monthly target depending on your income.
  4. Make a wish list; you should have a list of what you want and do not want when it comes to the house you want to buy. You can classify them into must haves and deal breakers. The must haves can include things such as a good school district, big parking space among others. The deal breakers might include places with busy streets in case you have children, houses with one bathroom if you have a big family among others.
  5. Research neighborhoods; you don’t want to buy a house in a place that is not safe and is dangerous. You can make your research online and see what people say about certain places and how they rate them. You can also see if you can afford a certain place and its various facilities and amenities.
  6. Get pre-qualified for a mortgage; at this point, we shall assume that you have done all the research and saved up for the down payment and closing costs. The next step is to get a pre-qualification letter. You need to confirm with the lender about how much they are willing to give you. The reason you will require a lender so early in the process is to for the seller to know that you can actually afford the house.
  7. Find a realtor/broker; these guys will help you get a good house and at a better deal. You might find that they are a bit pricey or not good at all so you need to know your strong points and negotiate accordingly.
  8. Get a home inspection; you need home experts like electrician, plumbers, painters among others so that they can tell you everything you need for the house. A home inspector might not be able to give you all the information you need like in case the AC leaks, taps need to be replaced among others.
  9. Close on your home; after everything is done, you have to close on the house. Endeavor to read the paper work word by word so that you don’t miss anything. In case there is anything you don’t understand, hire a real estate attorney to explain everything to you. Do not sign any papers you are not comfortable signing until you are absolutely sure.
  10. Move into your home; this is the most exciting part. In most cases, you will get the keys to your house after you have paid for it or after the first installment, according to the contract signed.

And there you have it, 10 easy steps to freedom!

Grey Oak