There can be a lot to learn when you’re a first-time homebuyer. If you don’t follow the right steps and make sure that this purchase is a good one, you could end up being on the hook for thousands of dollars and have a property that isn’t what you expected.
As a first-time homebuyer, there is one list of steps for you to follow. You should:
- Determine how much you can actually afford
- Get a pre-approval for the mortgage
- Look for a home that you want within your budget
- Consider working with a real estate agent and attorney
- Visit and tour the homes you’re interested in
- Submit an offer when you’re ready
- Insist on an inspection
- Get the home appraised
- Renegotiate if needed
- Close the sale
These 10 steps may seem like a lot, but failing to do any one of them could hurt your purchase in the long run.
What’s the importance of an inspection?
One of the most important steps on this list is to get a home inspection. This inspection will look for problems with the property, such as a damaged foundation or mold. Having an inspection allows you to know the major issues with the property, if there are any, so that you can take care of them.
Is an appraisal really necessary?
Not everyone gets an appraisal, but it may be necessary if you want to get a mortgage for the property. If the property is only worth $50,000 and the seller is asking $100,000, the mortgage company may not be willing to finance the full amount. A good appraisal also helps you know that you’re buying what you think you are, not something worth too much less than what you’re spending.
Following this checklist will help you touch on all the important steps of buying a home. If you have questions or would like more information, it’s smart to talk to your realtor or to get legal support. Having the right team to work with can help you avoid costly mistakes that you’ll end up paying for.