8 Easy Steps On How To Pick A House You Will Fall In Love With
Buying a house is a big investment so you should take your time and conduct a thorough research when finding one. Choosing the right home can be a daunting task. There are a lot of realtors and real estate developers who sell different types of homes and offer a wide range of promos and payment options. You may find yourself hard-pressed on how to pick a house with so many options available.
Sifting through all the real estate listings can also be overwhelming. You may be looking for a new home and probably have a ton of questions. So what should you do? Where should you begin?
To help you get started on how to pick a house you'll love, we have compiled 8 easy steps that you can follow to make your home search a thorough but manageable one.
First Step On How To Pick A House: Do Your Research
After you have decided to buy a house in Austin or in any other place, start compiling a list of all the listings you've found online or in printed ads like newspapers, magazines, etc. Then, sort them out by price or house type, whichever you prefer.
For easier access, you can also highlight the homes that caught your eye. Aside from research listings, you can also read up on different articles which can explain housing trends on your area. It is also important to know if you are in a buyers market or a sellers market.
Knowing the price and the type of house that you want will help in your decision on what is the best option for you.
Second: Determine Your Budget & Any Other Financial Considerations
One of the most important factors in determining a budget you can live with. A rule of thumb that you can follow is to look for a home with a price tag no more than five times your annual household income.
List all of your current and planned future expenses and your current income plus savings earmarked for housing. Having an overview of your financial situation will help you from taking more than you can handle and becoming house poor.
There are resources online like a budget calculator or planner which can help you to make this step an easier one.
Third: Secure A Good Plan For A Mortgage
In relation to the second step, you need to know how much you can spend on buying a house.
First, you have to get prequalified for a mortgage. To get prequalified, you need to apply and provide pertinent financial information about your income, savings, and investments to a mortgage banker or broker. Once they receive the documents, they will go over it and tell you the amount you are qualified for.
Once you know the amount of money you can borrow, you now have a fairly clear picture of what you can afford. This will help you filter through the houses you gathered in the first step on how to pick a house.
Fourth: Talk To A Licensed Real Estate Agent
Real estate agents can help you get more information about homes and their neighborhoods. Our in-depth knowledge of the home buying process and familiarity with the area you will probably live in will prove invaluable.
Having a licensed real estate agent in your corner increases the speed and efficiency of buying a home which is crucial when you are in a sellers market. At the very least, setting up a free consultation will educate you on the current market conditions and available inventory.
As a licensed real estate agent in Austin Texas I am always available to sit down and discuss your home buying goals for free. There is never an obligation to use me as your realtor however it would be a privilege to me to represent you when buying a home in or around central Texas.
When you are ready, contact me to get started today.
Fifth: Go Shopping
Now you are on to the most exciting and tiring part of the whole process – shopping for your home. Start by visiting the homes you identified as within your budget. When looking at the houses, take note of the following:
- Electrical system
- Windows & doors
- Traffic around the area
- Amenities around the area such as schools, supermarkets or shopping centers, restaurant, and public transportation options
Do rush the house visits. Take your time going around the house and checking every parameter that is important to you. Afterwards, talk to your real estate agent so they can negotiate with the seller on your behalf.
Sixth: Get The Home Inspected
The usual process is that the sale is contingent on the results of a home inspection. The home inspection an important process that checks for any structural damage.
Your real estate agent will be in charge of arranging the inspection or you can select your own. The inspection is usually done within a few days after you and the seller have come to an agreement.
The home inspection results will be sent to both you and the seller. Afterwards, go over it and check if there are any non-negotiable items that needs to be taken care of.
Seventh: Choose A Reasonable Loan For Your New Home
There are a lot of loan programs available for those looking for a new home. Talk to a mortgage banker or broker to discuss your priorities.
After selecting the most convenient loan option, your future home will then be appraised by an independent appraiser that is arranged by the mortgage bank. The appraiser will then determine the estimate of the value of the house. Once the appraisal is done, all parties to the sale will know the fair price for the home.
Eighth: Seal The Deal
Once everything is in place, the last step on how to pick a house is to complete all of the required documents. Make sure you fully understand the realtor and closing costs before you complete the sale. Your realtor will walk you through all the details.
Do not forget to properly fill out the loan documents and submit it to the mortgage bank in a timely manner. Afterwards, the payment will be sent to the seller and then you are ready to move in!
Picking the right house, as mentioned earlier, is no cake walk. However, it can be process of self-discovery and ultimately, the prize of having the perfect home will make all the efforts worth it.