Whether it’s your first time or you’re a seasoned homeowner, the buying process scarcely changes and the steps to buying a house are universal! These steps are designed so you can have the smoothest, most straightforward experience possible, and land the residence of your dreams!
Step 1: Have Funds for a Down Payment Ready
If you’re using a loan to buy your home, you will typically need some kind of down payment. Ideally, it should be around 20% of the selling price, but there are several options depending on which loan you end up taking. Either way, make sure to save up cash so you are prepared to make this real estate transaction!
Step 2: Check Your Credit Score
Credit scores are very important to lenders! They will affect your mortgage rates and how much you will be loaned. Lenders will decide how likely you are to make your payments on time based on your credit score and history.
If your credit score is low, you may consider improving it before going out to buy a home! Credit scores are compiled from your payment history, how much money you owe, and how long you’ve had credit.
Step 3: Get Pre-Approved
Getting pre-approved means a lender has reviewed your credit score and financial documents and has made an official offer for how much they are willing to lend you. Note that you do not necessarily have to take out a mortgage from whoever pre-approved you! A pre-approval letter is generally important because it gives you an estimate of what you will be able to afford. Moreover, real estate agents and sellers favor potential buyers who are pre-approved.
Step 4: Find the Real Estate Agent for You!
A real estate agent will help you with listings, communicating with the seller, and nearly every other part of the buying process. They will be your main consultant and offer expert advice, so it’s important to choose wisely! If you want to learn about how to find your perfect real estate agent, check out our blog post on it.
The Sarah Bernard Realty Team is experienced and well researched in the St. Louis area. They consistently provide excellent service and make real estate transactions as stress-free as possible!
Step 5: Find a Home and Make an Offer!
You can find listings online and through your real estate agent! This is the fun part. However, when you think you’ve found the one, it’s time to make an offer. The listing price is generally just a baseline and is flexible, so your real estate agent will help you put together an offer. It won’t just specify how much you want to pay; it will also indicate if you will require a home inspection (you should!) and if there are any contingencies.
Step 6: Get an Inspection and Home Appraisal
An inspection is essential in the final stages of buying a home. There are several characteristics of a home that the average person can’t see, so you want an inspector to make sure you are aware of all possible liabilities in your prospective new house.
It’s also likely that your lender will require an appraisal to make sure the home is a good investment. Home appraisals are very similar to inspections.
Step 7: Close the Deal!
On closing day, you will sign all the legal documents, make several payments, and receive the key to your new home. Congratulations! You have reached the final stage.
As a final note, don’t forget to switch homeowner’s insurance to your new home as well as your utilities. If you’re a new homeowner, buy homeowners insurance!
Sarah Bernard Realty Will Guide You Through the Process
Our realty team is expertly trained, know the steps to buying a house, and we can make sure the buying process is smooth and understandable for all buyers. It can seem complicated and tedious, but with the right realtors, you will find the best possible deals without the headache.
Contact us for a no-obligation complimentary seller’s consultation anytime – we’re here to help. 314-780-9070