A Step-by-Step Guide for Buying a Home
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Buying a home is a dream come true for many Americans. And because it’s likely the most expensive purchase you’ll ever make, you want to make sure your decision is the best one both financially and in terms of space, comfort, and how it meets your needs. Whether you choose to build your home from scratch or buy an established one, there are several things you need to do before you can get the ball rolling.
Putting together a good plan is essential, as buying a home is one of the most stressful things you’ll do in your adult life. Keep in mind that a backup plan is a good idea in most cases and that things will go wrong. Metro-Atlanta real estate expert Kasondra McConnell provides this brief guide to help you stay one step ahead of the problems throughout the process so it will go as smoothly as possible.
Get Pre-Approved
Obtaining a home loan is one of the most important steps because the type of loan you get will determine how much you need for a down payment, how much your mortgage payments will be, and what that means for you down the road. First, check your credit score; then, learn about the differences in mortgages. For example, an FHA loan is a great option for first-time homebuyers with lower incomes who have limited funds for a down payment. On the other hand, a conventional loan is one of the most popular and comes in a wide variety of down payment options. You can get either an adjustable or fixed-rate loan 15, 20 or 30 year fixed, and a 20 percent down payment will ensure that you don’t have to worry about mortgage insurance. Many lenders offer other conventional downpayment options such at 100% financing, 3% , 5%, and 10% down. Once you’re pre-approved, you can establish a budget and talk to a real estate agent who can help you find what you’re looking for. Next, you’ll make an offer and begin negotiations.
The Search Begins
Surveying the market before you get started is a good idea so you don’t encounter sticker shock, and so you feel prepared as a seller. For example, homes in Atlanta can run the gamut on price, with $384K being the average price, but the market isn’t especially competitive and homes typically sell for 8% under listing. Having that information will give you more the think about when it comes time to negotiate.
Consider the Type of Home You Want
You may find an older home that meets all your needs, or you may decide to build your own after finding the right property. Building from scratch is a popular option these days because it gives the homeowner the freedom to customize, but it comes with its own set of rules and responsibilities. You’ll have a lot to consider, from hiring a builder and designer to figuring out how many rooms you want and the right shape of the home. Building your own will ensure that you get exactly what you want, but the cost can be significantly more than buying depending on where you settle. The average cost to build a new home is around $248,000, but adding custom aspects, as well as the popularity of the location and the quality of the materials used, can raise the price to $350,000 to $1.5 million and up.
Plan for the Future
While your home inspection will help unearth any major issues prior to your purchase, you need to be prepared to spend money on regular upkeep and fixes. One thing most homeowners can agree on is that things seem to go wrong at exactly the wrong time. Hot water heaters burst, hail storms destroy roofs, and appliances always seem to break when money is tight, but if you plan ahead and create a home fund, you’ll never have to worry about those unforeseen expenses. Set aside some money for the maintenance of your house and put it into an account that won’t be touched. You’ll thank yourself later.
Prep for Closing
The terms of the closing of your home will depend on where you’re moving from, whether you had help from a realtor, and how much of a down payment you put down, so you’ll need to find out the details to prepare for those costs. After that, think about having utilities turned on in your name, arrange for the move, and take care of final details such as walk-throughs.
Buying a home is one of the biggest things you’ll ever do, but it doesn’t have to be riddled with anxiety. Planning well will allow you and your family to enjoy the process without all the stress, so look for ways you can prepare ahead of time in order to prevent last-minute problems.
Ready to find the home of your dreams? Let real estate expert Kasondra McConnell help you find the perfect home where you can settle in and enjoy all the Atlanta has to offer.