The home-buying process is an exciting time, but it is not without its legal and specific requirements and the potential for some stress on your part. You will need to figure out how you are going to pay for the home, and you also want to make sure the home is sound and its systems are working as they should. Here are some important steps you should complete prior to buying your first home to help you accomplish these tasks.
Look For Your Financing
The method you use to buy your home is going to determine your monthly payment for the foreseeable future and how much you spend on the financing. There are several different avenues you can use to secure financing, and they each have their own benefits.
One of the most common ways to finance a home is with a mortgage broker or your bank's lender. A mortgage broker is a great option because they have access to a wide variety of wholesale lending programs with great competitive rates. Your mortgage broker will be able to find you an FHA, non-prime, or a loan for your bad credit situation without having to go through a bank, which will save you money on the loan's costs.
Talk to your realtor about recommendations for a mortgage broker or other wholesale mortgage lender you can work with. Or you can ask around friends and acquaintances for recommendations and referrals for one in your area.
Check Into the Home's Condition
When you find a home you are interested in buying, you will want to check into the home's condition to reveal any problems. This process can be a several step process, depending on the home and how much you want to check into on it.
The first step of the process you complete when you tour the home. Check the home's systems and components as much as possible by turning on water, flushing toilets, switching on the electrical and HVAC. You can also bring a flashlight to peek into the attic or crawl space for any light shining from the outside or signs of moisture. Also, open up any cabinets below the sinks to check for moisture problems.
The next step entails hiring a professional home inspection for the home. This can be a general home inspection. Your inspection process can include an additional inspection to check for other areas of the home that could pose problems that are not included in a general home inspection, such as the septic system, sewer lateral, and a test for radon or mold. Be sure you complete these tests before the inspection deadline in your purchase contract.