Buying a property is one of the exciting but stressful experiences you will ever go through. It can also be an expensive period and a time consuming one. In order to reduce stress levels, save money and make best use of time, there are certain steps that should be taken, before the buying process itself starts.
These steps can help make the process of buying a house a lot easier. This is obviously important as a simpler house buying process is what all property buyers want.
Start researching the market as soon as possible
As soon as you decide that buying a property is a good idea, you should take a look at the housing market. Identify some properties that are similar to what you are looking for and check asking prices and how long the sale process takes. Having this information to hand means that you are in a better position to negotiate intelligently when you at the stage of buying a property. It also helps you to identify areas where property represents the best value for money.
Work out how much you can afford to spend
Before you start looking at properties, you need to have an idea about how much you can afford to spend on a home. Remember that some lenders require you to have a down payment of 20%. This is a significant amount of money, so you need to be realistic about what type of property you can afford. You can also look into other options, such as a Conventional 97 loan with 3% down, so that you can secure a loan with a lower down payment.
Make sure you are pre-qualified and pre-approved for a loan
When you are looking for a property to buy, it helps if you have already been pre-qualified and/or pre-approved for a loan. It helps sellers to see that you are serious about the process. It also means that you have more certainty about the type of property that you can afford.
Pre-qualification is a relatively simple process where you provide your basic financial information and the lender gives you an estimate of the amount of money you are likely to be able to borrow. Pre-approval takes the process one step further. You need to provide more detailed information and evidence and the lender looks into your credit history before deciding how much money you can borrow.
Find a good real estate agent
Finding a good real estate is important as they can be vital in helping you find exactly the right property for you. A reputable real estate agent has in-depth knowledge of the area and of the housing market. They also know how to navigate the house buying process and have excellent negotiating skills which they can put to use to make sure that you get the best possible deal.
Taking all of these steps before you start to seriously look for a property helps to make the house buying process a lot easier.