If you're looking for a home, it is essential to understand and anticipate the things required of you and the challenges that may obstruct your home search. The following are eight things that you need to consider during the home buying process.
1) Review your credit history / reports
Before taking the plunge into the property market and sending offers to sellers, you need to first review your credit report and history. As much as possible, your credit report should look its best when you're applying for a mortgage. Small errors and inaccuracies on your credit report can be really costly so you should look out for those. If there are small debts you can settle (or forgot to settle), deal with them immediately.
2) Down payment – How much are you able to pay?
Your down payment will play a role during the negotiation. A higher down payment will give your more leverage. If you can afford to put down 15-20 percent as down payment, you should do so. If you could afford a 20 percent down payment, much better.
3) Work with a licensed real estate agent
In choosing a real estate agent , you should search for someone who has built a solid reputation among locals. Look for someone who has served clients and homeowners in that area. Similarly, make sure that he is properly licensed.
4) Search for a reputable mortgage company
After finding the right agent, it's now time to look for the mortgage lender that suits your needs. Your credit report will play a role here so it's important that you have carefully reviewed it by this time.
5) Search for a home that meets your needs and budget
Make sure that the home you've found meets your family's housing needs. How many are you in your family? How many bedrooms will you be needing? How much monthly payment can you afford? These are just a few of the many questions you need to answer.
6) Schedule a home inspection
A picture will paint you a thousand words yet there is no substitute to physically inspecting a property you're considering to purchase. Schedule a home inspection before making an offer.
7) Make an offer, make a counter offer, negotiate
Your real estate agent can help you in more ways you can imagine during the price negotiations. It is likely that the seller will make a counter offer once he receives your initial offer.
8) Complete all paperwork, documents and move in
Before moving in make sure that all paperwork and documents are completed and filed properly especially those relating to the mortgage. This is to avoid any hassle and ensure a smooth move in.