Understanding the Home Buying Process from Start to Finish

Buying a home is one of the biggest life steps one can make. According to research, people find the home buying process to be one of the most stressful yet important processes in life!

Why is it stressful? The answer is simple: it requires so much planning, searching and investing time and effort, that it simply cannot be done either fast or easy.

Also, people who are planning on purchasing their dream home need to do a lot of networking or team up with real estate professionals, who can do it for them. Even then, it’s better to combine your networking structures with your real estate agent’s.

Oftentimes, the best deals come from the people we know and friends of our friends.

Source: redbudgroup.com

That being said,  the complex process of homebuying is something that is full of obstacles and it also requires a lot of different steps you need to make. Some of the biggest challenges for people is the fact that they have to negotiate a lot and also bid a lot. Outbidding other buyers is a big thing that you need to be prepared for; also you need to keep in mind that even that isn’t enough sometimes.

Other challenges that are worth mentioning is the fact that even if you find the house of your dreams, that doesn’t mean it will meet all the requirements. For example, during the inspection process the house may not be adequate although it seemed like it at the first glance.

Finally, one of the biggest challenges people usually experience during the homebuying process is the fact that the seller may not move out as fast as the buyer is expecting it to happen. This can then result in having to make changes in your overall plan. Although for some people this is no big deal, for others it is, especially if they are trying to sell their own home to move to a new one.

The best thing you can learn from other people’s challenges is the fact that you can expect a lot of things along the way – but there will be others that are completely unexpected. The solution to all this is to simply work with the professionals, have them by your side and also be prepared to adjust and adapt to new circumstances.

Source: nerdwallet.com

However, if we put challenges aside, there are some basic steps to buying a house. These steps are usually the same no matter where you are buying a property, and no matter what your budget preferences and other factors of influence are.

Let’s dive into it.

If you’re buying a house for the first time this might be an overwhelming process for you. As a matter of fact, this process can take from a couple of months to even a year depending on your preferences, the market itself, your budget or simply the expertise of your real estate professional.

This is usually the first thing that no one prepares you for.

According to myperch.io, the first thing you need to understand about this process is that the more research you do at the very beginning, the better and easier it will be for you when you move forward to the next phase.

This means that you need to conduct research as soon as you decide to start house hunting or the moment you decide you want to move. The research of the area where you want to move, along with different types of properties or listings, and finally: understanding how all of that fits in your budget is crucial; even before you hire a real estate agent to help you out.

It is vital to know what you want and what you’re looking for, because that’s the only way real estate agents can help you achieve your goal.

Source: zillowstatic.com

After you’ve understood what you’re looking for or what are the main bullet points that you want to focus on in your next home, you can move on to the next phase which is getting pre-approved for a loan.

This is very important because you may have a different understanding of what you can afford compared to the reality. This , at the same time, the most important step you need to take because it will help you have a crystal clear understanding of how much money you can count on when purchasing a new home. You need to prepare all the documentation that is needed and provide it to the financial institution that you’re trying to lend money from.

After you’ve done this, it is the right time to find a real estate professional who can help you out in the next phases of the buying process. Knowing what you want and what’s your budget are the essentials, but having someone who can negotiate for you, who knows the area and who is great at closing the sales, will be a life changer when it comes to finding a house from your dreams fast and in an efficient way. It is possible to do this all by yourself, but it is hard to fit this process into your daily schedule, because it’s simply time-consuming and can be exhausting.

Finally, when you and your real estate agent find the house of your dreams, the next thing you need to do is to make an offer. This is going to be followed by a lot of negotiation, depending on how many future buyers are in the game and depending on the cellar itself.

Source: localprofile.com

If everything goes well, you can expect a home inspection as soon as the house enters escrow and you shouldn’t miss out on this step in any scenario. The main purpose of home inspections is to provide you with valuable info that can reveal potential problems and issues with the house and also give you enough details about the safety of the home.

After the inspection report and if everything’s the way to go, you have to decide the type of your mortgage loan and pick one that works best for you. Afterwards, you will have to schedule a home appraisal or in other words you need to determine that the property is being priced fairly.

This is finally being followed by lots of documentation so expect a lot of paperwork along the way prior to closing the deal.

After you’ve closed the deal there is only one thing you have to do: sit down in your new home, have a glass of wine and enjoy your new sanctuary!