If you wish to buy a house, you must be up to the challenge of completing one of the biggest purchases you’ll ever make. From determining your budget to closing the sale, the home buying process can be overwhelming if you don’t prepare beforehand. Here is what you need to know if you want to dip your toes into the real estate market.

How to Buy a House

1. Get Your Finances in Order

When you decide to buy a house, start estimating your budget and checking your credit score. Be realistic about what you can afford in terms of monthly mortgage payments. Also, consider upfront costs like the down payment (which is usually 20% of the property price), home inspection, closing fees, and insurance.

2. Choose the Right Mortgage

Choosing the right mortgage will allow you to save a lot of money in the long run. Some options that you can explore include conventional loans, FHA (Federal Housing Administration) loans, and VA (Department of Veterans Affairs) loans. Keep in mind that if you have a high credit score, you can get a lower mortgage interest rate. 

3. Shop for a Home

This is the most interesting step in the home buying process, so take as much time as you need. Consider working with skilled real estate agents who can help narrow down your search to properties that fit your budget. 

4. Submit Your Mortgage Application

Once you have a purchase contract, you usually have 45-60 days to fulfill it. Within three days after receiving your application, your lender should be able to give you a document containing your loan estimate, monthly payment, interest rate, and closing costs. You will be required to verify your assets and income to prove that you can meet your payment obligations.

5. Close the Sale

You need to sign your documents and bring your ID during the closing. But before this, carefully review your advance copy of the closing disclosure, so you can avoid being caught off guard. The document should contain all the closing fees you need to pay, including the loan down payment. If the transaction goes smoothly, you should be able to move in after just a few days.

Trust Herron Realty in Old Forge, NY, to help you buy a house that you can call home. Their caring and experienced realtors are always ready to guide you and make every transaction a breeze when it comes to home searches, commercial real estate, vacation properties, and more. Call (315) 369-6910 to speak with a friendly and knowledgeable real estate agent and browse their featured listings online.