April 29th, 2021 | Updated on December 8th, 2021
Median home prices in the United States soared from $298,900 in the first four months of 2014 to $346,800 in the first four months of 2020. That’s more than a 16% rise in value in just six years! Not a bad return on investment, is it?
Don’t get us wrong, real estate can still experience drastic falls as it did in the 2008 Housing Crash. However, this is a rarity, and the possibility of land appreciating after a few years is higher than it depreciating. Even if the value of the structure itself depreciates, the land on which it sits can become more valuable.
This is why buying a home could be the best financial decision you make this year. if you have already made that decision to take the plunge and buy yourself a new property, here’s exactly how you should go about it in 5 steps.
1. Prepare Your Finances
The purpose of preparing your finances is so you know what kind of property you can realistically afford. A mortgage calculator will help you estimate your budget, calculate your income, savings, debt, and other financial obligations.
After the calculations, make sure you’re able to comfortably pay your complete mortgage payment plus taxes every month.
2. Put Things In Place For A Mortgage
You’ll need to know how much you can potentially borrow before you start searching for a house. Getting prequalified for a mortgage is the easiest way to do so.
To get prequalified, simply provide your mortgage banker with some financial details, like your income, savings, and investments. Your lender will go over this information with you to determine how much money to lend you.
3. Find The Right Buyer’s Agent
In the home-buying process, the real estate agent acts as your representative. Your agent will look out for your best interests by locating homes that suit your expectations, scheduling showings, assisting you in the writing of offers, and negotiating on your behalf. That said, you must choose the right Buyer’s agent.
If, for example, you wish to buy a property around Brisbane, then it’s best that you find a property Buyers Agent Brisbane already accepts and trusts. This way, you’re sure the agent is credible and knows exactly what they’re doing.
4. Find The Home And Make An Offer
Now is the time to start checking out properties in your price range. Taking notes on all of the houses you visit could be beneficial because there’ll be lots of houses to visit.
As such, it might be difficult to remember everything about them. You can even take photos and videos if you like. Make sure the home’s electrical connections, plumbing, and overall condition are suitable for you.
5. Get A Home Inspection And Appraisal
Your real estate agent will normally assist you in scheduling this inspection within a few days of the seller accepting your bid. Meanwhile, the lender will have an appraiser come out and give you an unbiased estimation of the house’s worth.
Wrap Things Up!
Purchasing a home, as you would expect, entails a significant amount of paperwork. Your lender will hire a title company to manage all of the paperwork to ensure that the seller is the legal owner of the property you’re purchasing.
During closing, you will sign all of the paperwork necessary to conclude the transaction, including your loan papers. Once this is done, you have a new home!