Purchasing a home can be challenging yet rewarding process

SU Indian Tribe

As there are multiple steps within buying a home, each step should be taken into careful consideration for future purposes intended. Granted, purchasing a home is a lifetime experience, it would be highly recommended that a home meets the needs and requirements of your family. While budgeting and financing are key components for securing a home, planning and researching are essential during the preliminary stages of home buying. Factors such as the location, security, and space of residence should also be thoroughly examined for the safety and security of your family’s wellbeing.

During the pre-qualification, a future home buyer must first complete several tasks before purchasing a home. The first step is to eliminate any outstanding debts or collections before consulting a financial institution or mortgage lender. Debts such as school loans, credit cards, and car notes should be paid off. To exemplify good banking history, a savings account should be established with your personal banking institution. Overdraft fees and account balances should also be avoided at all costs.

Once all outstanding debts have been paid, researching lenders and institutions is the next step in financing a home. As interest rates fluctuate depending on lenders, researching financial institutions could save a homeowner large amounts of money in the end. Following the consultation of a lender, the examination of a credit score and verification of income will be completed in the next steps. Bank statements, pay stubs, tax returns and identification will be required during the pre-qualification stage.

After being approved by a trusted lender, the pre-qualification amount will assist in the budgeting process. As affordability is important, other factors should be taken into consideration as well. Property taxes and homeowner’s insurance are the additional expenses that should be budgeted for when committing to a mortgage. Depending on the size, location, and price of the home, additional expenses can fluctuate. Therefore, by staying disciplined and considerate of your family’s financial wealth, affordability is key when choosing a home.

Researching the right home that meets your family’s needs can be processed. Emphasizing the methodology of the process by elimination can save you time and money. Listing essential desired features within a home such as the size, location, and security can be a starting point. Going further into detail, the desired home might consist of a two-car garage, fenced yard, and or backyard porch. By listings these amenities, it can help narrow down the list of homes.

Utilizing resources such as tribal credit, real-estate agents and open houses can benefit a homebuyer during the research process. While consulting a trusted resource, it is important to keep in mind additional expenses such as maintenance and security. As previously stated, planning is a key component when purchasing a home. Therefore, thoroughly researching the background history of a residence can aid discoveries. By doing due diligence and thinking of potential possibilities of future growth, planning can help save time and money in the end.

Once a home is selected, an inspection should be completed by a certified inspector and or appraiser. Inspecting the condition of the home can be a major deciding factor. Aspects to consider should be the year, make, and model of the home. Essentially, the home should be tested for drugs, gasses, and other harmful fumes. Taking precautions by all measures can help void out fixings and damages before closing on the home. After the home has been inspected, the home buyer can then make an offer on the home. Features, fixings, and requests can be negotiated during the offer process.

The final stages of the purchasing process will include the appraisal of the home. Within this process, mortgage companies will require the appraisal of the home to protect their interest in the residence. Doing a title search on the home is important so no other person can make a claim to the property. Also, some financial lenders might require insurance to be purchased before closing on the home. Other closing costs can include loan-origination fees, title insurance, credit report charges, taxes, and surveys. After all of the closing documentation has been signed, you are free to move into your new home.

A final tip for new homeowners is to save, do maintenance and improve. Saving will always be important, especially for an emergency fund. In case of a disaster or emergency, a fund should be established for security and safety measures. Regular maintenance should be performed on the home to maintain its property value. By performing regular duties, it can help decrease repair costs to a minimum. Improvements are always of such value, but it is recommended that it is budgeted for and spent wisely.

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