Buying your first home is a significant milestone and major life event. Many people spend years or decades scratching and saving to be able to afford a home of their own – living with parents or in crummy apartments saving up for that down payment.
The excitement felt at finally being ready to take the plunge into home ownership is justified. But it can quickly become confusing and overwhelming as you realize how many steps and stages are involved in purchasing a house.
However, the confusion and feelings of being overwhelmed can be prevented by doing some research and knowing what the process looks like before you get started. Here is a step-by-step guide to the stages of buying a house so that when the time comes, you can concentrate on your excitement rather than getting lost and confused.
Table of Contents
Down Payment, Budget and Pre-Approval
Saving your down payment is likely the longest step in the process. It’s generally suggested that you should put 20 per cent down, but remember there are often first-time homebuyer programs that may reduce this amount.
Getting pre-approval is also essential, as it makes it more likely that your offer will be taken seriously when the time comes. It also gives you a solid number to work with when considering your budget. Using your down payment and pre-approval amount, use a mortgage calculator and figure out what kind of monthly mortgage payment you can afford.
Find a Real Estate Agent
Once you’ve saved up for your down payment and gotten pre-approval, you can start looking for your real estate agent. A knowledgeable agent is vital for understanding the local market, finding the right listings, and getting your offer accepted.
If you have friends or family who have recently bought Ajax houses for sale, you can ask them about their experience and whether they would recommend their Ajax realtor.
Narrow and Start Your Search
In order for your real estate agent to do their job and find the home of your dreams, you have to know what you’re looking for. Consider what your needs and wants in a house and neighborhood are. How important is it for you to be near work or have easy access to public transit? Do you want to have a park or shops within walking distance, or do you drive everywhere anyway?
When it comes to a house, think about everything from the number of bedrooms and bathrooms you want to your ideal floor plan. Once you’ve firmed up your wants and needs, you can start looking at homes until you find the right one for you and make an offer.
Remember the Inspection
Once you make an offer that is accepted, it’s time to put your money where your mouth is. A pre-approval is not a guarantee, so shop around with different mortgage lenders and arrange your financing.
Often, when offers are made, they’re conditional on an inspection. With all purchases, you want to know what you’re paying for. A home inspector will look through the home and identify any issues that might need repairing immediately or in the near future.
Closing
When all that’s done, it’s time for final negotiations. If there were significant issues that came up during the inspection, a repair credit could be negotiated. Inclusions and exclusions are also decided on, such as appliances and window treatments.
When negotiations are final, it’s time to celebrate the purchase of your first home. It’s a complicated process, but knowing what to expect when you go into it can make it a lot easier.