Buying a home is one of the most significant investments one can make in their lifetimes. And make no mistake about it, it is an investment. That means it takes a certain amount of knowledge and preparing. You will likely be emotional. And that is fine. After all, you are making a very significant, long-term purchase. The goal is to curb your emotions, at least for a little while. Such a bold endeavour requires us to be cool-headed. You will need to be practical and inquisitive. And this is not an easy thing to achieve. Seasoned real estate investors tend to run into problems sometimes. Simply put is is a complicated subject with many variables. But do not fret. You are not the first or the last person to dare do something like this. The craft has been perfected some time ago. Let us go over everything you need to know.
1. Time investment
How long does it take to buy a house? That is a complicated question to try and answer. Generally speaking, do not expect to finish the entire process in under 4 weeks. On the other end, sometimes it takes more than half a year to conclude the business. Sure, you can make it quicker by making a respectable offer right from the start. We are in a fast-paced real estate market. This means supply and demand are very fluid. Real estate comes and goes very quickly and many are left empty-handed. You could find yourself getting outbid pretty regularly. More importantly, you will have a hard time finding that perfect place for your needs. Studies show that around half of the buyers spend their time searching for less than three months. A small percentage has spent up to a year dealing with this. It can go either way.
2. Choosing the right home
The most important step is knowing just how to find the right home. What are the metrics by which you will gauge a potential home? There are a plethora of factors, most of them subjective. Write them all down and check every potential home if it satisfies these variables. But there are some universal ones that we can cover here. Firstly, choose the right location. You can make your home whichever way you like it. But once you buy it, you will not be able to physically move it. Arguably, it is the most important factor. Take into account your children, spouse and anyone else that will live in that house. The location is important for them too. All of the inhabitants need to be able to move around the neighbourhood. Check if the house has all the necessities close to it like schools, parks and shops.
3. Doing the research
As we have mentioned, buying a home requires a lot of preparation. When closing in on a deal, make sure you inspect the home as thoroughly as possible. Check the prices for the homes in the general area. You may conclude that there are better choices somewhere close by. Make sure you know your property law thoroughly. Only then can you be sure that no one can sell you a rough deal. The more you know at what you are looking at, the more questions you will have ready at your disposal. Simply put, you will not be caught off guard. There are risks if you do. It may cost you money in the future. Whether it be repairs, reconstruction, etc. you will want to avoid it all. If a home is not in accordance with the regulations, you need to know about it.
4. The financial aspect
Finances are always a limiting factor. Most people do not have nearly enough to pay for a new home outright. Usually, some form of external financing is necessary. There is no point in getting one’s hopes up for a property if you are unable to afford it. Make sure you research your mortgage options. Get the most favourable rates you can. A larger downpayment will mean a lesser interest over time. Naturally, the bigger the initial payment, the better. If you are already approved for a mortgage, gather all the necessary documents with the help of your agent. You will need all of the necessary documentation for the loan do actually be approved. This is called the closing process. It can take a few weeks, depending on your lender. Make sure that you are capable of making regular payments. You do not need any late fees down the line.
5. Getting a home inspection
This ties in nicely in one of our previous points. After you have done your research, you should hire a professional to inspect the home. They will have your best interest in mind. And it is their responsibility that you do not encounter any unpleasant surprises in the future. You will have about 10 days to complete an inspection. Do note that it takes about a full day to get the inspection report. If the report has any inconsistencies, you will have about a week to renegotiate the deal. The reason for this is that the home does not have the same value as previously thought. If there are problems or deficiencies with the home, it decreases its value. The asked price should follow accordingly. Or, the current owner can offer to remedy the situation. Either way, the value proposition needs to be reasonable.
Purchasing a home is a big deal. Do not let anyone tell you otherwise. But it is manageable. The information we have covered here is especially valuable to first-time buyers. There are a lot of variables that one has to take into account. Someone that is not prepared can easily be overwhelmed. That means you will forget and overlook important aspects of the home in question. Every real estate acquisition is different. Each situation will be unique. So, do not expect everything to be textbook. The chances are it will not be. So, use all the information you can gather and make the best choice for you.