The Ins and Outs of a Home Purchase

The Ins and Outs of a Home Purchase

No one needs to tell you that buying a house is a milestone that many Americans dream about. But when it’s your first home purchase and you don’t know what to expect, it’s common to feel overwhelmed. It’s thrilling to think of your family making a life for yourselves in the perfect house, but all the steps required to find and close on that house can intimidate anyone.

That’s why RE/MAX Northland has broken down the home buying process into a few simple steps. While there is more to the process, planning for these stages will set your feet on solid ground:

Hire a Realtor with Experience    

Your first step will be to find a real estate agent you can trust. Ideally, they will have ample experience in your desired area and deep knowledge of the housing market. For instance, if you are hoping to buy a home in Aitkin or a surrounding lake community, the professionals at RE/MAX Northland can make the process much less stressful.

Go Through Your Budget      

As with any major life decision, evaluating your budget before buying a house is essential. Start by checking your credit score with the three major bureaus (Experian, Equifax, and TransUnion). Most lenders require borrowers to have a credit score of at least 620 to qualify for a conventional loan. Knowing your score now can help you create a plan for boosting it if necessary.

You’ll also want to use an online mortgage calculator to estimate what kind of home you can afford. With your maximum purchase price in mind, you can start searching the housing market for potential homes and neighborhoods.

Shop for a Mortgage

Even if you have a perfect credit score and a healthy income, getting a mortgage is rarely simple. You will need to speak with several different lenders so that you have options when it comes time to choose a loan.

Moreover, it's best to get pre-approved for a loan beforehand because it gives you an accurate picture of what kind of loan you are eligible for. Plus, it can work in your favor if you get into a bidding war.

Start the House Hunt    

Now, to the most exciting part — house hunting! After you have discussed what you’re looking for with your realtor, start looking for your dream house. Just remember that you are likely not going to find the perfect property. Keep a list of your priorities handy, and try not to be too selective until you are able to tour houses in person.

If possible, look at different houses in different neighborhoods. Often, we don't know precisely what we want until we see it, and you don't want to miss out on a home that could accommodate most (or all) of your family's needs because you didn't give it a chance.

Consider a Warranty   

After you have settled on a potential house, meet with your real estate agent and make an offer to the seller. This is also an excellent time to order a home inspection. Even if the seller has already had the home inspected, it's good to hire your own professional to evaluate the property for any red flags.

Furthermore, think about whether or not you should invest in a home warranty if the seller accepts your offer. A warranty will cover appliances and home systems that stop working. But keep in mind the seller may already have warranties on some of the home's components. Search “are home warranty plans worth it" to learn more about the benefits of home warranties.

If your family is ready to take the leap to homeownership, start developing a plan and strategy today. The home buying process can be complicated, but it doesn't have to be stressful. Work with an established realtor, and prepare for the steps above. And keep researching other ways to set yourself up for success!

Are you looking to buy or sell a home in Aitkin or the surrounding lakes area? Contact RE/MAX Northland today! (218) 203-3603