Simplifying the Home Buying Process

by Doris Arnold 05/19/2020

Image by Karolina Grabowska from Pixabay

Buying a home is a huge investment and the buying process can be very confusing—especially if you’re buying your first home. However, buying a home doesn't have to be challenging. By understanding a few key tips, the whole home buying process can run smoothly and efficiently.

Understand Your Needs

Even before you start looking at houses to buy, you should clearly understand your needs. The last thing you would want to happen would be to regret your purchase decision down the road. That being said, it’s extremely vital to do a lot of homework before even browsing for your new home. Think about your budget, lifestyle, future plans and anything else that relates to buying a new residence. This new home is an investment that can be with you for a very long time; therefore, you must make educated decisions throughout the whole home buying process.

Have a Hefty Saving Fund Ready

When buying a home, it’s very smart to put down a solid down payment. Doing this can help to limit the amount of interest you’ll pay over time, including possible lower mortgage insurance. While many lenders will permit a low down payment, it’s a good idea to put down at least 20%. However, this can be a hefty fee. In fact, even a 5% down payment on a $200,000 home is still $10,000. That being said, you’ll need a big chunk of savings in order to have an appropriate down payment. Be sure to start saving early and don’t pull the trigger on buying a home if your savings isn’t sufficient.

Explore Down Payment and Mortgage Options

There are many stressful factors in the home buying process, but the money involved tends to be the most troubling aspect. However, by knowing the many options you have when it comes to the down payment and mortgage, you can rest easy knowing that you made great decisions when it comes to financing your home. If you’re trying to come up with a solid down payment, you may want to try these options:

  • Conventional mortgages
  • FHA loans
  • VA loans
  • Understand Your Budget

    Understanding the budget is where many home shoppers fail. They may find a home that they can afford, but they don’t account for the unfortunate instances that can happen during home ownership. Things like a broken dishwasher, plumbing issues or water damage are all situations that can happen, and many of these scenarios can cost a great deal of money. That being said, be sure to look at properties that cost less than what you’re approved for.

    Don’t Focus On Market Timing

    Many home shoppers will continue to monitor the real estate market until they feel like the market has tipped in their favor. While some believe this is a very effective tactic, it isn’t a very intuitive move. That’s because it's impossible to anticipate the housing market. Prices will go up or down at any time, and it’s extremely difficult to know what will happen on any given day. So when you find that perfect home, pull the trigger and go for it—no matter where the market stands.

    About the Author
    Author

    Doris Arnold

    Real Estate is, if nothing else a people business. For me as a leading real estate professional, my work is not so much about buildings, contracts and inspections; it's about people, their dreams, aspirations and the most important place in their world- their home. I am a people person through and through. Simply put, people fascinate me... spend a few minutes with me and you can sense this unique attribute. I listen intently to you and most importantly, I have a genuine interest in what you have to say. Follow me around for a day and you will witness the powerful and positive effect I have on the people around me, whether it's my family, close friends, or a community acquaintance. Undoubtedly, you will see a caring and committed woman who makes a difference in people's lives. If you ask my past clients what they liked about working with me, some would say it was my business savvy and real estate expertise that impressed them, but most of them would comment on how much I cared about them. I really listen to what my clients want and do what I can to anticipate their needs. I always try to stay one step ahead and keep in constant contact. My clients know I am always working for them to keep them informed and up-to-date, and I have a highly organized way of walking my clients throughout the process of buying or selling their home that makes them feel confident nothing will slip through the cracks. I absolutely love what I do and I can tell you "I'm in The Business of People." What that means to me is that I have the privilege of helping my clients achieve their dreams. What that means to you is that you can count on me to care about what matters most to you because I make your real estate needs my top priority.