There are many things to consider when buying your first home. Some of the most important steps to buy a house are:
Learning the home buying process
Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home, check financial web sites on the internet for tips for first time home buyers.
Find out the price range
It is important to find out how much you can borrow before you start looking for a house. Talk with several mortgage lenders or brokers in your area and get pre-qualified for a particular price range. The mortgage lender will be able to help you establish how much you can borrow based on your annual income.
Get Pre-approved for a mortgage
The next step buy a house is to get pre-approved for mortgage financing. This is similar to getting pre-qualified for a price range, but it is a more formal process. You will need to supply proof of your income your lender may also require other information that will you need to supply.
After you have been pre-approved for your mortgage loan, it is time to start house hunting with a Real Estate Agent; your mortgage lender will give you a letter stating that you have been pre-approved for a mortgage and the amount you are approved to borrow. You should present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search.
Making an offer
Once you have found a home that meets your needs, it is time to make an offer on the property. You will already know the most you can spend from the pre-approval process, and you will probably have your own idea on what the property is worth. Your real estate agent can guide you through the negotiation and offer processes. You should also ensure that you have had legal advice from your solicitor before you are ready to sign the Sale and Purchase Agreement.
The seller may accept your first offer; however, it is more likely that the seller will come back with a counter-offer. This negotiation process can go on for a short or long amount of time, depending on a number of factors; your real estate agent will be able to guide you through the negotiation process.
Closing the mortgage loan
Once negotiation process has been completed, you will need to present your mortgage broker / Bank with a copy of the Sale and Purchase Agreement for the house. You will need to work with the mortgage broker to ensure you meet all the conditions required for the closing of the mortgage loan.
Home inspection prior to finalizing
Prior to finalizing your mortgage loan, you will want to make sure to have a thorough Home /Builders inspection performed by a qualified and certified home inspector. A home inspection will protect you from flaws in the construction and condition of the home that are not obvious to the naked eye.