Owning a house often involves a lengthy process initially but may be one of the most rewarding experiences. While different types of loans and homes may require different processes, there are basic parts that are common to most. Below is a small guide to help walk you through the homeownership process, so you know what to expect.
What Do You Need to Get Started?
Before you start the house-hunting process, it may be helpful to get a few things in order first. You may want to know your credit score and take some time to boost it if it is low. This may allow you to get lower interest rates, depending on circumstances. If choosing a conventional loan, you may need to have a down payment saved for the price range you are shopping in, which may range from 3 to 20 percent of the purchase price of the home. You may also want to obtain preapproval for a loan, as some homeowners prefer shoppers to have this before they show the house.
What Should You Consider Before Making a Purchase?
While a lot of decision-making goes into the buying process, there are a few considerations you may want to make before you begin looking. First off, determine what type of home suits your needs. Is a single-family home, a condo, or a townhome? How many bedrooms and bathrooms are necessary? Also, consider how much of a monthly payment you may be able to afford, which may lead to you determining what type of mortgage may be a good choice.
Steps in the Buying Process
When buying a home, many transactions follow the same type of process. First, decide on a home. Next, confirm your financing and determine how much money you have been approved for. After determining your budget, make a formal offer, either through your real estate agent or theirs. When making an offer, factor in closing costs as well. If the homeowners accept your offer, the next step is often a home inspection. If everything comes back as satisfactory, the closing process begins, where everything is transferred over to you.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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Sources:
Everything you ever wanted to know about becoming a homeowner, Investopedia, https://www.investopedia.com/homebuying-guide-4776300
12 Steps To Buying A House: The Home Buying Process Made Simple, Quicken Loans, https://www.quickenloans.com/learn/steps-to-buying-a-house