Increasing demand and low supply caused US home prices to increase in the middle of the pandemic. The situation made it challenging for some people to buy their first homes. Despite this, homeownership is still the goal of many people across the country. Go through this detailed article regarding how to reduce the stress in the homebuying process to make this process hassle free.
While reaching this goal is not easy, it is not impossible. And to increase their chances of buying their first home, people should make the necessary preparations. If you are in the market for a new home, you should consider some tips to help you prepare for your first home purchase. Here are the tips that you should consider when you want to buy a house in the US.
1. Set your budget
The first thing you should do is set your budget for the home you want to buy. You should make sure that your budget is realistic and considers the features you want for the house. To have an idea about the budget, you should consider your income and expenses. You should also look at the down payment for the house and the monthly mortgage and insurance expenses.
The budget should also include maintenance expenses and a contingency fund for emergency repairs. You should set aside around three percent of the cost of buying the house for maintenance and repair expenses every year. You also need to consider other monthly expenses, including groceries, phone bills, utility expenses, credit card payments, and insurance expenses, among others.
You should remember that financial institutions will review your monthly income and employment status. If you are self-employed, you should provide documents showing the stability of your income. Additionally, increasing your earnings will increase your chances of getting a housing loan.
2. Get a pre-approved loan
Getting a pre-approved loan will increase your chances of getting the house that you want. The low supply and high demand made the housing market competitive. The situation compelled homebuyers had to compete with each other for the limited supply of houses in the market. So, it’s a good idea for you to show your sincerity by having the funds ready for you to make the down payment.
A pre-approved loan also shows that you can afford the home you want to buy, which can help you in case you need to outbid other homebuyers. But you should remember to stay within your budget when there’s a bidding war for the house.
3. Look for a home within your budget
When you are looking for a home, you should stay within the budget you set. So, when you look for a home on a Multiple Listing Service (MLS), you should limit your search to homes in your price range. An MLS allows you to set the criteria for the homes you want to view.
You should also use apps to facilitate finding houses for sale. Aside from checking properties, the app should also allow you to arrange an appointment to view the property you want to buy. Additionally, it should help you negotiate with the property owner to increase your chances of getting the house.
These online tools have a considerable listing of properties available in the market. They also allow you to connect with real estate professionals who can help you when you are in the market for a new home.
4. Work with a real estate professional
Working with a real estate professional is also recommended since they can help you find properties that meet your requirements. They also facilitate home tours of properties you want to buy. Real estate professionals can also help you negotiate with property owners and work on the contracts once you finalize the deal. It is one of the major thing to reduce the stress in the homebuying process.
Experience real estate professionals also advise their clients about market conditions and if the price of the home you are eyeing is fair. They can also help you identify issues in the house that you are not aware of. Additionally, real estate professionals do not charge you when they help you since they earn through commissions from the sale of properties.
5. Hire a home inspector
Hiring a home inspector is another thing you should consider since they can help you find any issues in the house you’re planning to buy. A home inspection allows you to avoid home repair expenses after you buy a house.
You can also use the findings of a home inspector in renegotiating the price of the home. Or it will allow you to ask home sellers to make repairs before you finalize the deal. Getting a home inspector ensures that the property you are buying is safe and well-maintained.
Buying a house is a major investment. Due to this, you should make sure to take into account different factors that can affect the deal before you finalize it.