Reasons to Consider Pay Later Options While Buying Houses in Abuja, Nigeria
There are so many young people in Nigeria who wish to have a place of their own at a young…Read More
The processes involved in homeownership comes with some challenges that can overwhelm the buyer. Apart from the stress associated with touring different houses, you’re required to review your financing options. However, your journey towards homeownership can be seamless if you understand the key steps. So, if you’re looking to achieve your dream of buying your own home, follow the 8 steps to buying a home below!
In the first step of the 8 steps to buying a home, you need to ask yourself if you’re ready to purchase a home. Buying a house will cost much more than renting. So you must ensure that you can cover additional costs (like water, home repairs, garbage pickup, utility costs, and electricity) that come with homeownership. You don’t want all these costs to add up so much that it puts you in a bad situation.
With other costs like taxes and insurance, evaluating your financial preparedness seems like the right thing to do. And while at it, try reducing your debt. If possible, get out of debt entirely. It would help if you save up an emergency fund and reduce high-interest credit card debt. The bottom line is, buy a home only when you’re financially ready.
Our platform allows people to raise money for their real estate needs, making this step a lot easier! We make it possible for people to sell, rent, or purchase real estate from the comfort of their homes by just clicking a few buttons on their mobile devices.
As mentioned earlier, homeownership can be pretty expensive. But you can mitigate home buying costs by getting a loan for your purchase. Begin by getting pre-approved for a mortgage, as this will help you gain insight into your budget. It is wise to do this before you even start shopping for a home.
You can engage a mortgage broker‘s services if you require more options. He or she will provide you with information and access to many programs and loan companies. This way, you’re a step closer to getting the best rates. Also, consider contacting your credit union or small local bank. They may have cost-saving options for you.
The sheer number of loan types and payment options for your mortgage can be overwhelming. But it always helps to research and find out what options are best. This can be easier if you keep a few things in mind. A short-term loan (for instance, a 15- or 20-year loan) allows you to pay off your mortgage within a short time.
On the other hand, long term loans (for instance, 30-year loans) require lower monthly payments. Although the interest rate is slightly higher than in shorter-term loans, long term loans are easier to manage.
You can reduce your home costs by lowering your debt with your down payment. The trick is to put down above 20% of your home’s cost. This way, you will not be required to pay private mortgage insurance (PMI). A 20% down payment is not a prerequisite for homeownership, but you should consider PMI costs before purchasing.
Be careful while looking for ways to cover your down payment to avoid making bad choices. Your home purchase can help you build wealth. But poor decisions will jeopardize your finances.
Tell yourself the truth about how much home you can afford. You don’t want to spend so much on your mortgage. Not only will this lower your income, making you struggle to meet your daily needs, but it will also ruin your retirement savings. Ensure that your mortgage, taxes, and insurance does not exceed 30 percent of your income.
It is not advisable to buy a home that costs more than 250 percent of your annual salary. And if you’re in debt (student loan or credit card debt), you should go for a smaller home payment.
Now, you are pre-approved for a mortgage, and you know how much you can spend on a home. It is time to engage the services of a real estate agent. By paying attention to your needs, your real estate agent will recommend some houses on the market to help you make a perfect choice.
Once you see a house you like, you would want to make an offer. At this step, your real estate agent will help facilitate negotiations. They may also help you throughout the process of closing the deal.
If you feel like you’re losing out by working with a real estate agent… you might be right! The price of real estate does not only depend on the typical factors like competitor prices, property development costs, or property taxes. As a matter of fact, it depends a lot on the negotiation skills of the buyer and seller. That’s why on Pelow we try to fill the negotiation gap by letting you be direct buyer or seller, you choose according to your situation!
Before closing the deal, you need to carry out a thorough home inspection. This is important before moving to the last stage of the 8 steps to buying a home. Please don’t mistake this for an appraisal because they are not the same. Hire a home inspector to help you discover hidden areas that need repairs in the house. The home inspection will reveal any underlying issues that could stop your purchase.
Such issues may include a roof needing to be replaced, mold, foundation problems, termites, etc. This stage in the home buying process can save you a lot of money in repairs. Knowing the home’s condition also gives you an advantage during negotiations. You’ll be able to reduce the home price due to repairs.
Don’t rely on the home inspection done by the homeowners. A separate inspection is more reliable and will let you know whether or not to pull out from a deal.
The close is the final stage in the 8 steps to buying a home. You’ve done most of the work, and the only thing remaining is to sign the final papers. Once you do this, your real estate agent will pay all appropriate parties. At this point, you’re now a proud homeowner.
You may now move in and carry out desired renovations. Once you’re settled, you can cancel your old utilities and set up new ones. You’ll also need to change your address with your bank. Setting up new utilities will help you prevent late fees, thereby saving you time and money. 8 best cities to move to in the united states
Home buying is known to be a stressful endeavor, but it does not have to be so. By educating yourself about the process, you’ll make it easier. You’ll also stand a better chance of getting your desired home at an affordable price. With these 8 steps to buying a home, you’re one step closer to get the best bang for your bucket.
If you are interested in the process of buying a home, we think it’s important for you to know how housing affects health and wellbeing, so have a read here! Since you are considering buying a home/apartment we think knowing the best cities to go to will also be of interest to you, so have a read.