With the COVID fears subsiding, economic prospects improving, government giving stimulus and lucrative packages, the real estate experts suggest that the end-users should not postpone their decision of buying a home. Here is a step by step guide on how to buy a home and how long does it take to buy a home.
Steps on how to buy a home and how long it will take
Once you have evaluated your needs and requirements, the next step that may concur in your mind is how long the process will take.
Step 1- Think about what do you want
Make a thoughtful decision, not miserly
Don’t let your choices be governed by the price alone.
Appreciate the difference between being miserly and being frugal. Sometimes being critical is essential.
Understand the demands of your family members
Accept that everyone in your family is important.
Do not undermine the needs of comforts, and go the extra mile before buying the home.
Do not compromise
Every home buying decision need not be acrimonious.
Be vocal about your preferences and what matters to you before buying the home.
Be honest about your income
If you are planning to buy a home under a joint name, you need to be honest with your partner amount the income that you have in your hand.
Don’t obsess about wealth
Don’t obsess about leaving your fortune to your kids. They may not require.
Allocate the amount of wealth to your home. Your home is primarily your comfort zone, so don’t compromise.
Evaluate what you feel before buying the home
Each spent will not offer you results.
However, make your choices by evaluating how you want to feel in your new home.
Step 2- Talk to a specialized agent
Talk to a real estate agent or trusted sources that can enrich your buying experience. Find someone who has the knowledge and a reputation.
A good agent can help you to avoid bad purchases by seeing tweaks in your deal.
Also, you should be familiar with your local area before buying starting the purchase process.
Beware of the market, spending and financing requirements.
Step 3-Negotiate
Before finalizing the deal and starting off with the loan process, negotiate with the seller.
It may take a few rounds of negotiations related to appraisals and repairs. It can be a time-consuming affair.
Step 4 – Finding the home
Many people think that buying real estate is a fun experience because they feel they already have sufficient knowledge about various areas of and around the city.
But if you are seriously planning to buy, house hunting is an overwhelming experience. You may feel stressed, pressurised or anxious.
According to a study published by Insight Media, it takes around 81 days to find out a home, and most people view at least 16 online homes before resting their title.
Step 5- Finance your loan
Get your loan approved (10 days)
The process of loan approval is lengthy and cumbersome. The loan agents will verify your income records to check whether you qualify for a mortgage or not.
You need to submit the income proof or your spouse, identity documents.
Before approving the loans, there is 1 14 day window period when credit bureaus verify your credit report.
Step 6 – Create an offer (5 days)
Once you have found your dream home, now you need to put an offer to the table, the agent will explain to you all the financial terms, and then you and your agent can try to negotiate with the seller.
You can also send a personalized letter describing how much did you like his home and how much you are interested in buying the home.
It can help you to fetch discounts.
Step 7 – The mortgage process begins
Once the offer is accepted by both buyer and the seller, the mortgage process begins. The process may take a few weeks.
The lender will verify your documents like bank statements, mortgage documents, etc. They will inspect your appraisal reports too.
The overall process may consume a few weeks. Then you will be expected to select a homeowner’s insurance service provider who will verify the information before insuring it.
There is a lot of work involved during this process. You have to be on your toes.
Step 8 – Make a deal
Now, everything is sorted, but before closing the deal do a walkthrough to inspect the condition of the home.
This is especially important if you have requested any repairs during the home inspection.
Now, verify the documents and sign your paperwork. Depending upon complexity, the deal could take a few hours. Finally, get the keys in your hand.
To Conclude
Buying a home is not a cakewalk. Don’t be afraid to face your financial reality and discuss it openly with the agents.
Check your facts and figures, be genuine and find a confidante who can help you to close the deal.
The confidante should be the agent who can help you with the facts, guide you with the information and act as your conduit to break your knowledge barriers.
You can also take credit counselling before buying the home.
The idea is to keep the focus on buying the home without chipping in excess money.
