If you are new to the home buying process, there are many steps you can take to lead to an easier experience. Check out these tips to learn about what needs to be done to purchase a house!
- Begin researching houses and be aware of the type of home you are looking for. Learn about a variety of neighborhoods, understand the market, and carefully see what will best meet your needs in a house within the area in which you are interested in living.
- Decide on a budget and be familiar with home prices in the area you are looking to move. Know of all of the expenses ahead of time. The new mortgage is the main expense, along with costs such as insurance and property taxes. Once you know what down payment you can afford to put down to purchase a home, you can determine the price range for homes you can purchase. Typically, lenders will require you to put a 20% down payment on a house. This can vary based on the type of the loan and your personal financial situation. In resort markets like the Outer Banks, if you are buying an investment home, some lenders will also consider that as an additional income and that may qualify you for a higher loan amount. Allow some cushion for unexpected expenses or repairs.
- Find the best real estate agent for your needs. Real estate agents have a lot of expertise on the industry and the process for purchasing a home. Find the real estate agent that has knowledge about the neighborhoods in which you are looking for your future home. Exclusive buyer’s agents can also help fairly value the houses you find.
- Get pre-qualified and then pre-approved for a loan. By doing this in advance, you can learn about the best price range for your future house and about how the financing process works. During pre-qualification, you will inform a lender about your financial situation and learn about what type of mortgage is within your range. During pre-approval, a mortgage application plus a fee are involved. You will receive more information and an approval letter to be certain the mortgage is affordable.
- Make the offer once you have chosen the best house for you. The real estate agent you are working with will help you with making the offer. This is a step toward reaching a price accepted by both the buyer and seller.
- Apply to get a mortgage. After you enter the contract to purchase a home, you should confirm a loan for the house.
- Look into insurance. Homeowners insurance is required and is an important protection for your house for any covered loss. Flood insurance may also be required depending on where your home is located. In the Outer Banks, wind & hail is not typically included in a homeowners policy and must be purchased separately.
- Have the home inspected. A home inspection can be set up by a real estate agent, and the inspector will inform you if there is any damage to the house that should be repaired.
- Get an appraisal. If you are borrowing funds from a lender, they will order an appraisal to make sure the home you are purchasing is valued equal to or more than the purchase price. An appraiser is an external member to the real estate contract and will provide a fair and accurate price after evaluating the house’s value.
- Close on the house. In the final part of this process, you will close on the house. This involves finalizing the loan, paperwork, and current payment to the seller. Make sure to use an attorney or title company to seek proper legal guidance and to review all of the paperwork and recordation of the deed.
Eillu has an experienced team prepared to help with your Outer Banks property purchase. Contact us to learn about buying an Outer Banks home!