Although purchasing a house is a significant milestone worth celebrating, the buying process can also be intimidating for first-time home buyers. Even worse, now that the country is in recession with rising interest rates and high property prices, starting the home-buying process alone can seem overwhelming.
Nonetheless, it’s still possible to buy your dream house without feeling drained or scared by the entire process. In this step-by-step guide to buying a home, we’ll explain the steps required so you can go through the process as quickly and accurately as possible.
What Do You Need to Buy a House?
Buying a house is one of the most significant commitments you can make in life. Therefore, before starting the home-buying process, there are several factors you need to consider to help you determine your readiness to purchase a house. These include:
- Credit score – a healthy credit score gives you access to loans with better all-around terms.
- Down payment – most homeowners require a down payment, while lenders charge closing fees before closing a loan application.
- Pre-approval for a home loan – getting pre-approved for a home loan from a qualified lender is important.
- Timing – determine if it’s the right time to buy a house based on unique situations and market conditions.
- Necessary documentation – keep things like income and employment statements to submit to your lender.
- A qualified Thank You Heroes Agent – helps navigate the complex process of buying a house and provides you with the necessary information to make an informed decision.
It would also be helpful to understand the home purchasing process to make it less overwhelming.
How to Buy a House: The House Buying Process in 10 Steps
Here are a few steps to take to ensure you receive the keys to your new kingdom without any hiccups or delays:
Check Credit Score
Thank You Heroes lenders use your credit score to determine if you qualify for a loan and the type of home loan you are eligible for. Some of the key information used by Thank You Heroes lenders to determine creditworthiness includes payment history, the total amount owed, and length of credit history. Thank You Heroes VA lenders prefer a minimum credit score of 580 for loan processing.
Determine How Much You Can Afford
After checking your credit score, the next step is calculating how much of the housing costs you can afford from your income. To do that, subtract all debt expenses from your income and other budgetary costs to determine if there’s enough money left for house-buying expenses.
Generally, most reps for Thank You Heroes recommend channeling a maximum of 30% of the total income toward housing costs, such as principal, interest, insurance, taxes, and association dues. You should also consider the closing costs and other fees associated if securing a VA loan.
Choose a Lender and Get Pre-approved for a Mortgage
There are different types of loans, ranging from VA to FHA and USDA loans available. In this case, you want to ensure you choose a VA lender with minimal credit score requirements and no down payment.
Once you choose Thank You Heroes as your lender and apply for a loan, you should receive a pre-approval letter stating the amount you’ve been pre-approved for based on your application assessment.
Find a Thank You Heroes Agent
Buying a house involves multiple transactions with multiple parties. A Thank You Heroes Agent acts as your representative throughout the process, ensuring you get offers of homes and home showings that fit your criteria. To determine if a right Thank You Hero Agent is the right one for you, make formal inquiry of questions such as:
- Experience in the industry
- Standout qualities
- Knowledge of the local housing market
Start the Home Search Process
Start looking at different houses in the market with your Thank You Heroes Agent. Tour as many homes as possible and list them in order of highest to least preferred based on unique aspects like size, price, location, design, and social and educational amenities in the surrounding neighborhood, among others.
Make an Offer
After finding a suitable home and running a comparative market price analysis, submit an official offer in writing. The proposal should include an earnest money deposit to show the owner you’re serious about buying and contingency if certain conditions aren’t met.
Get a Home Inspection and Home Appraisal
Schedule an in-person home inspection by a professional home inspector. Ensure they capture all damages that require repair and notify the owner of the same for repair to be done. If not, consider doing a Home Appraisal to readjust the total home price based on the home’s market value after all aspects are considered.
Purchase Homeowners Insurance
Get homeowners insurance to protect your home and surrounding structures against damage or theft. Thank You Heroes lenders require this before approving a VA loan.
Do a Final Walkthrough
Take a final stroll through the property a day or two before closing the deal to ensure all requirements, including repairs, are met.
Close on Your New Home
Your Thank You Heroes lender will send you a Closing Disclosure three business days before closing. It summarizes the closing terms, including closing costs and other charges in your loan. On the day of closing, your Thank You Heroes lender will oversee the successful transfer of ownership of the house to you after signing the legal documents and paying closing costs.
What If I Need Help or More Information? Contact Thank You Heroes Today!
Thank You Heros has a Home Rebate Program that enables qualified heroes to get huge savings when purchasing a home by covering up to 100% of the closing costs. Our program provides capable heroes selling homes with first-rate representation. In addition, our agents give back 20% of the commission to the heroes after a successful sale.
Thank You Heroes is here to guide our heroes through the home-buying process step-by-step. Contact us today for more information on the home-buying process or how we can represent you.