Step-by-Step Guide on How To Buy a House in 2023
Step 1: Do tons of research and figure out your financials
It will be in your best interest (both personally and financially) to pick the perfect home and area and to consider your financials carefully before pulling the proverbial trigger.
Figure out the kind of home you want to buy and where you want to purchase a property before going any further.
Step 2: Talk to a real estate agent
Real estate agents are homebuying experts who know the local market and can take you to houses that meet your needs in your target area.
Real estate agents make finding the perfect home much easier and faster.
Step 3: Contact lenders for preapproval for your mortgage
Getting preapproval accelerates the mortgage lending process.
A preapproval letter shows you have earnest money to put toward a property and will help you in your house hunting in any real estate market.
Step 4: Begin looking for and touring homes
Remember that you don't have to accept the homes your real estate agent has prepared or outlined for you. If none of the homes fit your needs, ask them to find another property.
Listen to your real estate agent's advice. They might tell you whether a certain feature or amenity is difficult to find and may offer advice regarding when you should purchase.
Step 5: Choose a house and make an offer
Generally, you should try to make a competitive offer based on the prices of surrounding homes or the listing price stated by the seller.
Speak to your real estate agent about what they think a good offer would be. They may be able to offer insight into the market competition, whether other buyers might be able to offer more money than you, etc.
Step 6: Negotiate with the seller
Purchasing any house in 2023 requires some haggling and negotiating. Don't be afraid of this, as it's a necessary part of the process! Most negotiations revolve around who will pay for most of the closing costs.
Step 7: Schedule an inspection and appraisal
Once an inspector has finished their work, they will create an inspection report for you to review. Make sure the inspection doesn't reveal any major issues before moving on.
If the appraisal report says the home should be worth much less than it is listed for, go back to the bargaining table and try to get the seller to lower the price.
You should never buy a home if the seller wants you to skip the inspection and appraisal steps. It could be a sign that they are trying to trick you into purchasing a bad property or a home with a lot of things wrong with it that will require you to sink even more money into it in the future.
Step 8: Apply for a loan
Applying for your loan should be quick and simple if you have already gotten preapproval.
If you don't qualify for any mortgage loans, try to improve your credit in the meantime or seek out alternative means of financing.
Step 9: Contact other necessary professionals
You'll want a real estate attorney to look over the closing documents and ensure there aren't any loopholes for any party to exploit.
The title insurance company ensures your purchase (specifically, the title for the property) so that you're protected if you discover or are made aware of a problem with the title later.
Homeowners insurance is usually necessary if you want to be financially covered from losses or damages to your home, especially from disasters like fires or floods.
If you plan to renovate or change the property in any way before moving in, now's the time to contact your preferred architect or contractor.
Step 10: Check the property one last time
Don't skip this step in 2023! Always check your property one last time before buying it just to make sure that the seller has not tried to hoodwink you in some way. Make sure that all the appliances and electrical outlets work, and ensure that there aren't any issues with the yard, doors or windows.
Step 11: Close the deal
Your real estate attorney will bring the paperwork to the final meeting with the home seller, and you and the seller can sign the documents that note the transfer of ownership.
Your attorney will also usually be happy to take these documents down to your local county clerk's office so they can be filed properly. They may or may not charge an extra fee in addition to their commission for this labor, however.
Now you should receive the keys to your new home and be the official owner!