Home buying process | Tips on Buying your First Home
For first time home buyers, the process of owning a home can be challenging and intimidating. In this article, we explain what it takes to buy a home, and provide steps on getting started:
Requirements for buying a house
The following is a checklist for first home buyers in Philadelphia.
Exceptional Credit Store
A Qualified Real Estate Agent
Savings for down payment and other costs
Mortgage loan preapproval
Steps Involved in the Home Buying Process
Knowing what to expect in the home buying process can save you a lot of headaches. Here are common steps involved in owning a home in Philadelphia:
Step 1: Review Your Credit Score
Mortgage lenders use your credit score to determine if you qualify for a loan. Take the time to review your credit score and improve your finances.
Step 2: Know What You Can Afford
Calculate the total cost of owning a home in your area. Afterwards, save up for the down payment and closing cost, as well as the interest, property taxes, insurance and association dues.
Step 3: Get Preapproved Mortgage Loan from a Trusted Lender
A preapproved mortgage loan shows the seller your seriousness. We recommend contacting various providers and comparing loan estimates for the best deal.
Step 4: Find a Reputable Real Estate Agent
Your real estate agent will represent you throughout the entire home buying process. Before hiring an agent, inquire about the realtor’s qualifications, past experiences, success rate, expertise, discipline, skillset etc.
Step 5: Go House Hunting
Be realistic about your goals and do not be too picky or hasty when you go house hunting. Instead, consider the physical condition of the home, the average income capita of the neighborhood, the means of transport, education, crime rate and many other factors.
Step 6: Make a Suitable Offer
Consult your real estate agent before approaching a home seller. Be aware of any contingences that may nullify the deal on the table and ensure that all conditions are met before making a down payment.
Step 7: Carry out a Home Inspection
Inspect the home you intend to buy with a professional home appraiser, Take notes of any repairs that need immediate attention and other future renovations; and ensure the house is actually worth the price stated by the seller.
Step 8: Acquire Homeowners Insurance
As a first time home buyer, you absolutely need some insurance. Having homeowners insurance will protect your finances when buying a home and will and save you a lot of hidden costs during the process.
Step 9: Make a Final Inspection
Inspect the property one last time, a day or two before closing, after the seller moves out, and ensure all repairs have been completed as agreed.
Step 10: Close the Deal
After reviewing the closing disclosure and you are satisfied with the terms, closing costs and other outstanding fees, you may then close the deal! And just like that, you’ve bought your very first home in Philadelphia!