Home buying for many can be a stressful and taunting however if done right and with the help of the right people the experience can be easy and rewarding.
Before you begin the process you want to think about the needs of you and your family:
- accommodating family members, whether in number, disability access or other practicalities of daily living.
- right-sizing the square footage and cost of your living space to your budget and lifestyle
- lifestyle preferences
- income-related factors
Start to prearrange your needs
Location – Think about the school districts, access to stores and services, the neighborhood culture, ad the transportation to work and back
Size & Style – What are the needs for your household and what type of house can provide those needs. How many bedrooms or bathrooms will your family be needing? Do you need a a house with a large backyard for your family? etc.
Monthly housing budget – Understand and follow through your budget. The monthly budget includes the mortgage, utilities, fees, property taxes, heating and cooling expenses, and a fund for repair, replacement and maintenance. All these factors should be taken into consideration.
Before searching for a house you must decide how much you can afford. Understanding what is in your price range and what is not can save a lot of time and frustration.
Establishing your financial foundation:
- Have a credit report – The federal law requires you to ahve at least one free credit report annually form each of the three major credit reporting bureaus.
- Save the down payment – Having a large down payment on a hosue can better the terms of the mortgage.
- Get pre-approved for a mortgage – Father all your earning statements and get pre-approved for a mortgage. By doing so it gives you a chance to negotiate the best price and shows that you are serious about getting the house.
- Getting a loan – Research and understand what type of loan you will be needing and how to obtain that loan.
Searching for a Home
With your home-search list start looking for houses that fits your needs in neighborhoods of your liking. Attend to open house, talk to friends or families, or anyone else who will have some kind of input to your decision making. Keeping a log of houses that you are interested in makes the selecting process easier,. Make sure to take pictures and collect listing sheets so you can compare the houses.
Make an offer/negotiate
Once you found a house that can provide for your needs and likings you would want to research the price parameters of recently sold, similar houses. This will help you know how much to negotiate when making an offer. It can also increase the chance that your offer will be confirmed. Ask a MAXXUM Investment Group agent to prepare a Competitive Market Analysis (CMA) to help you determine a reasonable price.
Remember that everything is negotiable, everything should be in writing, and be specific on what your purchase offer is. Once everything is settled and your offer is accepted be sure to include the necessary contingencies.
Closing the deal
Closing day is normally 30 to 45 days from when the Seller and the Buyer agrees to the terms and signs a final Purchase Agreement. The items paid by both the Seller and the Buyer are summarized on the Settlement Statement. After reviewing every item with the help of your real estate agent, you can get your home.
For more information feel free to contact us. 301-637-5700