Buying a home is likely the most significant decision a person takes in terms of investment. The Houston real estate market has appeared to cool down recently with a home still a part of every individual’s dream. Buying a house can make for an excellent lifetime investment if done correctly. Buying a home for the first time can be a challenging task because of all the factors present. With all the functions and requirements, you may feel anxious about making any financial mistake. However, first-time home buyers do have some benefits that encourage them to invest in the real estate industry.
Like any other project, first time home buying experience is also about getting all the related details right from start to finish. We will provide guidance to first-time buyers so they can make the right choice and avoid any mistake.
Decide Your Affordability and Start Saving
Before you decide to step into the Houston real estate market, you need to determine your affordability first and start saving accordingly. Figure out how much you can spend safely before starting your search, so you do not remain financially disturbed. You can set your spending based on your income, debt, down payment, credit score and your potential location. Once you establish your affordability range, you need to consider the following costs for saving:
➤ Down Payment
The type of mortgage you choose and the lender will determine your requirement of down payment. Some conventional loans will allow an individual to have a low down payment (up to 3%), but still, low DP means you need considerable savings. To overcome this challenge, decide a goal according to the down payment calculator or consult an expert.
Expenses like fee and other closing costs should also be a part of your financial plan. You have to pay them when you finalize your mortgage, and that ranges from 2% to 5% of the loan amount.
➤ Move-in Expense
You need to save some money for after purchase activities like moving, repairs, upgrades and finishing.
Before you start searching for a home, be sure to consult professional of the market for an idea. Some services say we buy a house in Houston and sell them, so you have a better chance of finding a home that fits your description. Services like Networth Builders purchase houses and can give you a great deal. Consulting professionals also gives you an opportunity to have an understanding of market rates and costs incurred. You can start making your financial plans based on the statistics gathered and begin your search. Real estate professionals have an idea about market insights and can give you great information that will make your search easy.
Start Your Search
As you now have an idea of market and savings; accordingly, it is time to start your home search. First, determine the location where you feel comfortable. Keep in mind the various factors like crime rate, utilities, and amenities that determine the value of that location. Also, look for the presence of various corporate offices or companies in that location will also increase the value of that location. For example, the nature of the Houston real estate market will change if there is an office like Amazon present in a location.
Secondly, see multiple homes during your search process. Do not stick top just one house and make your search challenging. Having numerous houses in focus will enable you to compare the rates and benefits of that location. This will give you multiple options to choose that you can consider for your dream home. Visit the neighborhood numerous times and familiarize yourself with that location regarding daily commute, security, noise levels and people.
Have a look at the catalogues of real estate services that state “we buy houses in Houston” like Networth Builders, as they will have a house worthy for you.
Offer and Closing
After careful consideration and searching, you will come across a house in the Houston real estate market that will fit your requirements. This step is essential, as it will largely influence your decision as well as future considerations. To avoid any regrets later, request a home inspection first. After review, you will know how much repair and upgrading remains and will check for structural conditions like electricity and plumbing.
Once you have satisfaction regarding inspection, it is time to make an offering. You can consult market professionals about offers based on the competitive and fair value of the property. If the seller accepts your offer, you proceed to the final point: closing and accepting the agreement. Closing is the last step before a seller’s hands you over the keys and your home search finalizes. This step can take some time as the seller will verify your information, and once it completes, your loan application will go through the underwriting process.
Once you arrange loan passes and the payment, you will likely get the possession of your new home.