Buying a house involves lots of planning and it might take a long time before the house purchase comes to fruition. The task of house buying might still seem pretty tasking even after you have saved enough to make a down payment on the property. The house buying process has been simplified by breaking it down into 12 easy steps with one step every month for 12 months.
January - Examine Your Purchase Readiness
Before you embark on a home purchase, you need to check if you are really ready for the home purchase. The home buying process is a stressful one and it requires a lot of planning, paperwork and negotiations, so you have to be ready for this.
February - Research The Local Housing Market
Carry out an extensive research on the local housing market in order to find a suitable home for you. Find suitable locations that are in line with your preferences and find out if there are available properties that fit your needs. You should also check out the prices of the properties you seek and find out if they are in line with your budget. If they don’t fit your budget, you might need to tone down your preferences a little bit in order to find a property you can afford.
March - Determine What You want in A Home
When you find out how much you can afford for a home purchase, you should decide what kind of home you need. If you don’t choose right, you might end up with a buyer’s remorse after your home purchase. Find out everything you would need in a home for now and in the future. You should decide on the number of bedrooms and type of house that is best suited to your preferences. This is to ensure that you know exactly what you are looking for and get better search results in the process.
April - Get Your Finances in Order
Analyse your finances and find out how much savings you have and how much you can afford to pay for a home. If your savings are not enough, make plans to shore up your finances. If you have any debt, this might be a good time to pay them off or make adequate plans for repayment. Find out also how much mortgage you are likely to qualify for. Check your income and expenditure to find out how much you can afford as down payment and how much you can afford to shell out towards your monthly mortgage repayment.
May - Engage The Services of a Real Estate Agent
When you finally decide on the the type of property that you love, find an experienced real estate agent to effectively handle your house search and negotiations. When you find a good agent, discuss the type of property you want to buy and let the agent know how soon you need the property. Agents have a very good knowledge of the local market and they would be better suited to look for that property that you want.
June - Find Out Other Professionals That You Might Need
There are other professionals that you might need during your home purchase deal and you need to make proper research to find good professionals for the job. A key professional to involve in real estate transactions is a lawuer. You might not need them at this stage but it is helpful if you have a short list to work from when you start the home buying transaction.
July - Find a Primary Mortgage Institution (PMI)
Look for a Primary Mortgage Institution (PMI) in your area and arrange for a meeting to know their mortgage loan terms and conditions. You can visit as many PMI’s as possible while searching for a suitable mortgage loan provider. This will enable you choose a PMI that has mortgage loan facilities that fit into your financial plan.
August - Commence Negotiations With The Seller
When you find a property that you love, approach and notify the seller of your intent to purchase that property. Ask your agent to draw up a letter of intent stating your intention to purchase the property. This process might involve a lot of negotiation and you have to be ready for this.
September - Get Your Documents Ready
There are certain documents that PMI’s would require you to provide before approving your mortgage application. You would need to provide evidence of income flow, tax clearance certificate, an offer letter from the seller of the property you want to buy and any other document that might be required. Get these documents ready so your mortgage application can be processed without delay.
October - Inspect The Property
Employ the services of a property inspector from the short list of inspectors you prepared earlier. A home inspection is very important as this enables you to make an informed offer or counter offer and it also helps you to avoid buying a house fraught with defects.
November - Wrap Up Negotiations
After arriving at a desired purchase price, the seller will draw up a contract detailing the price, terms and conditions of the sale. Ask your lawyer to check the contract and if he says it’s okay, you should go ahead and make payments for the property. Make sure that there are no stones left unturned in ensuring that it is a good buy before making any payment.
December - Make The House Move-in Ready and Move In
If you discovered any fault during the home inspection, make sure you fix it before moving in. Ensure that the amenities in the house are fully functional before moving in to avoid suffering undue inconvenience.
Once you fix these faults, create a moving plan to effectively move your belongings to your new
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