12 Crucial Steps to Buying a House

If you plan on getting a mortgage so you can buy a home you need to know these 12 important steps that will save you time and money. Failure to have a plan will result in:


Follow these 12 steps and save money and lessen the stress with your home purchase.

Step 1: Review Credit Rating


Things You Should Do:


Step 2: Determine How Much House you can Afford

You can determine this amount by taking your Gross Household Income and multiply that by 2.5


How Much House Can Your Afford

Keep in mind that this calculation does not factor in your expenses or any debt you may have. The best way to factor this in would be to calculate your debt to income ratio.


Debt to Income Calculation

Step 3: Get Pre Approved for Your Mortgage Loan

Mortgage Pre Approval

By getting pre approved for a loan before you start your search for a house will give you a better idea of the kind of houses you can afford. You could also be considered as a preferred buyer if it comes down to competing with other buyers.

Step 4: Choose Your Real Estate Agent

Real Estate Agent Professional

Finding a good and trusted real estate with experience will make a huge difference with your home buying process.

Step 5: Start Looking

House Searching

After completing steps 1-4 you can finally start looking for your dream home.

Step 6: Make an Offer

Make an Offer on a House

Some factors you may want to consider to help you determine how much your offer on a house will be are:

How Much Should You Offer on a House

Step 7: Be Ready to Negotiate

I hope you don’t think a seller will accept your first offer right away. If this does happen then great, but then again you probably could have gone lower. In any case you should expect some back and forth in this step of the house buying process.

Step 8: Offer Accepted

Congratulations! The seller has accepted your offer. Now what? Well you should expect the closing process to last anywhere from 30 to 60 days.

Step 9: Home Inspection

House Inspection

The house inspection is usually paid for by the buyer and should be completed as soon as possible so that you can have time for any repairs to be completed and also be able to re-negotiate your purchase price.

Step 10: Re-negotiating

Don’t expect the house to be perfect when you get your house inspection report. There will be small issues that you arise. When you try to re-negotiate the price of the house you need to base it on major issues that will cost you a lot of money in the future.

Step 11: Home Owners Insurance

Try to get bundles for your insurance to get better rates. For example you can bundle your home and car insurance to grab additional savings on both.

Step 12: Closing

After the first 11 steps are completed you are ready to begin the closing process. This is where a good agent will also come in very handy to help you with the ins and outs of the process.