Buying a home is such an important step in anyone’s life. You might be feeling a mixture of emotions right now. Know that it’s normal if you’re excited yet worried at the same time. This isn’t a small step, however, you shouldn’t feel lost in all of this. There are a few things that you need to keep in mind when you’re purchasing a house. If you’d like to ease your anxiety a bit, you might be interested in reading this article.   

Learn About Contracts

Buying a house is a long process that needs a lot of planning and research. One of the best ways you could prepare yourself for what’s yet to come is to learn about contracts. To put it simply, a contract is an agreement between the buyer and the seller; it includes the general outline of the transaction between the two of them. There are a few general components that you’re going to find in a contract; for instance, there will be a clear identification of all the included parties that includes you, the realtor and the seller. 

You should also find a clear description of the property. You need to pay attention to this because you need to make sure that the house matches the description. You can do so by having a checklist of everything that’s in the house, and don’t sign before checking the description first. There should be a paragraph that states the condition of the property, as well as the included appliances, deposit money, obligations, vital details about the house, date of closing, signatures, and terms of possession. That’s the kind of content that you should find in a contract. 

Now, what if the contract states something that you can’t work with or doesn’t match your plan? Well, in that case, you can always negotiate with the real estate agent or the owner. Contracts aren’t as rigid as people think. When it comes to big steps like buying a house, contracts and agreements become a bit lenient because this is a big purchase and a commitment. The buyer will be committed to paying off their debt for the next several years, which is why this step is a big deal that requires leniency between the realtor, buyer, and owner.

Find a Realtor

Most people are hesitant about communicating with real estate agents; they think that they’re required to pay more money for their services. This is not entirely true because realtors are mainly dealing with one homeowner and a bunch of people who are interested in buying the house. Usually, homeowners are the ones who hire realtors so that they can take care of the house, make sure it’s in shape, and meet with potential buyers. This means that real estate agents are hired by homeowners, which, as you’ve probably guessed, are also paid commissions by the owners. So, if you’re finding yourself a bit hesitant about having a realtor, remember that you’re not responsible for their payment. 

Additionally, a real estate agent is mainly there to help you get the best possible deal. They also make sure that everything is functional and working in the house. They can also give you the best deals, but that mostly relies on your negotiation skills, which will be discussed next.

Negotiation

For social butterflies, negotiation is an art. Some people can play anyone in front of them like a fiddle, lower any price, and scam the scammers. However, for the rest of us mortals, negotiation is like trying to convince a dog that you can’t throw them the ball if they don’t give it back first. When negotiating, some people often make the mistake of trying to pull off certain negotiation techniques and strategies that, let’s be honest, can be spotted from miles away. Not only that but unless you are going to be bargaining with someone who doesn’t have the time to look for better offers, a slimy negotiation technique can have an opposite effect on the sellers and the price. Think about it. 

Through research, we found that when negotiating, the best thing you can do is win the sellers, or their agent, over. Something as simple as being nice goes a long way. Try to see and treat them as people and not as a store for a one-time purchase. Reading this, you must be thinking that this is a recipe for getting scammed, and in that case, you would be wrong. Simply because if you’re the one negotiating, you won’t be going into the negotiation unarmed. Before you start talking numbers, know the market and the prices, thoroughly check out the house’s condition, and if you know someone with expertise in contracting or similar fields, bring them along. With extensive knowledge, you’d be able to guarantee yourself a fair price, and with good connections, you can take that down a notch. 

Know Your Financial Limitations

As you can probably tell, buying a house isn’t a breeze, and it involves a lot of planning on your end. Not only do you need to be saving up, but you also need to follow up with your bank accounts, make sure that you don’t have any debts to pay, and you need to create a budget plan for this great purchase. You might be asking yourself, 'How much house can I afford' when you’re just starting. This is why you must start creating a budget plan because it’ll demonstrate a clear picture of how much money you currently have, how much money you’re going to bring in, and your expenses. 

Based on your findings, you should know much money you are going to be spending on a monthly pay off for your mortgage. Familiarizing yourself with your financial status is not just about the mortgage though, it’s also about other things in the house itself. For instance, you might need to pay some money for experts who can inspect your house for any kind of damage. When you’re done with the examination phase, you’re probably going to be paying for things to get fixed. 

Home Mortgage

Image Source: https://pixabay.com/photos/mortgage-house-contract-sign-home-5266520/

The M-word. It is a term that terrifies quite a lot of people, especially those who haven’t dealt with it before. After all, this is the term we heavily associate with beloved film characters in severe financial distress. If that’s your experience, get ready for a change in perspective. What a mortgage is, is a loan. A big loan for you to buy a house. Now, you can take this loan from a bank, but that solely depends on your records there. For instance, if you have a good credit score and you’re not a person who has a lot of debts, then you’re most likely to receive a loan from the bank. 

With that being said, let’s get into more details. You are more likely to pay off the mortgage for many years to come. Of course, this period can be extended or shortened depending on how much money you pay at first. You also need to know that lenders will be checking your FICO score, which basically includes new credit accounts, types of used credit, current debt status, length of credit history, and payment history. They’ll also calculate the debt-service coverage ratio and the loan-to-value ratio. This is the kind of information that you need to have before you get that kind of loan, so you can be prepared and actually buy that house for you and your family. 

Inspections

Inspecting the house should come as a high priority on your To-Do list. You must examine every inch of the house before you make an immediate purchase. You need to know that there are two kinds of inspections; one that’s done by you and another one by a professional. With that being said, you need to know that your inspection is not going to be specific nor specialized. It’ll be more of a generalized examination. One of the things that you can personally check is if the house fits the same description that the owner provided. You can also look for obvious things like a crack in the wall or mold. Consider checking the water in the kitchen and bathroom and see if the thermostat is working properly or not. 

There are other things to look out for, but you can leave them for specialists. Things like insulation and energy efficiency, for instance, is not something that you can check out for yourself. It is also important that you check things like water damage, signs of foundational impairment, and things of the sort. Keep in mind that you need to make a budget for these inspections because they might cost you a couple of bucks, so it’s better to have it planned. It’s vital that you thoroughly inspect the house before you meet with the home appraiser and definitely before you secure a loan with your lender or with the bank.

Decorating the House

One of the best things about moving into your own house is that you finally get to redecorate to your heart’s content. It’s important to feel like the space that we’re living in is ours, and what better way to do so other than redecorating the house according to our preferences? Renovating the house is also a big deal because it requires a lot of planning and financial calculations. You should take your time with the planning; you don’t want to rush yourself with this because you mainly want your house to look aesthetically pleasing and, at the same time, feel like a cozy space for you. 

You could also use this time to carefully create a budget plan that’s just made for redecorating the house. You should start writing down the price range of paints, furniture, wallpapers, decorative items, plants, and things of the sort so that you can know approximately how much money you’ll need and how much you are going to be spending. If you find that it won’t be within your financial abilities to spend money on renovations, then, by all means, postpone the whole thing until you can afford it. You don’t want to put unnecessary weight and stress upon yourself. However, because it’s still important to feel like the place is yours, you can spend a limited amount of money on little decorative items. This is just temporary until you can repaint the walls and buy new furniture. 

Overall Condition 

Now that you’ve covered the major stuff, it’s time to think about other things that aren’t that serious, but they’re still important. When you move into a new house, you’re moving into a whole new town with new people too, and while this might not seem like an important thing to you now, it might affect you after you settle in. This is why it’s important to think about the kind of neighborhood you are moving into. You need to ask yourself whether you like this place or not. Is it safe for your family? Will your kids find friends there? All of these are important factors that you need to consider before moving in. The maintenance issues should also be on your mind when you are coming to a decision. You need to think about how often the appliances need repair and whether there is serious damage in any of them or not. It’s important to think about all of these things before you sign the contract. 

All in all, buying a house is a huge deal, so before you enter this long process, you need to celebrate the fact that you are going to purchase a property, and then you need to emotionally prepare yourself for what’s yet to come. The best way to go about this is to find a professional real estate agent who can help you out. Carefully read your contract, and don’t hesitate to negotiate anything that you are not comfortable with. You also need to carefully plan your budget for things like mortgage and decorations, and finally, make sure that you inspect the house before you sign anything.