ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Home Buying in 5 Steps

Updated on June 27, 2013

Is it Time to Buy?

Buying a home, and particularly a first home, can seem like a daunting prospect for many people. Can you afford it? Will you get the financing? Will you be able to find the home for you? Is now the right time? And, what's actually involved in buying a home? are all questions that people face everyday.

With so many big questions to face, it's easy to talk yourself out of making this big step in life and remaining with the status quo. The truth is that buying a home doesn't have to be a complicated process. In fact, with the right help from the right professionals, it can be completed in five steps in a relatively short amount of time!

Five Steps to Buy a Home

From when you first think about buying to actually being in your new home, there are five steps that you are likely to go through:

  1. Decide to Buy

    This first step is probably the most important step in the whole process. The funny thing is that many people may not even include it when they are on the road to home buying. Deciding to buy, or motivation, must be considered by all buyers, as it is the driving factor behind the rest of the steps. Buyers who lack motivation, or don't have a clear reason for buying, will find the process difficult as they will lack clarity when they begin their home search.

    Before moving on to step 2, think about why you are buying, and if you really want to buy now. There are solid financial reasons for people to buy a home, including financial security, building equity, benefiting from property appreciation, and tax benefits. If you are renting, deciding to purchase means that you gain all the advantages of home ownership, instead of your landlord.

  2. Obtain Financing

    This is the step where most home buyers fail, and not because they can't get financing, but because they complete this step later. There is nothing more disheartening than finding your dream home, and then being told you can't afford it. Not only have you lost that home, but every home after that just doesn't stack up.

    To avoid this happening to you, you should consider financing before starting your home search. It's important to find out what you can afford, as well as if you can obtain financing from your bank or mortgage provider.

  3. Hire a Realtor

    A realtor is professionally trained and experienced in orchestrating real estate transactions. Not only do they help you find your home, but they also work with the many other professionals to ensure that the deal gets done. On top of that, realtors are trained negotiators, and they are acting on your behalf. A realtor acts as your advocate and protects your interests throughout the entire home buying process. Choosing the right realtor for you can be difficult with so many to pick from, so use the following guidelines:
    • Have family, friends, and colleagues suggest good realtors they have used
    • Ask real estate agents why they got into the business
    • Ask about services the realtor provides, and why you should work with that person
    • Look at testimonials from past clients

    Pick the agent that you feel comfortable with and think will provide you with the best service you can get.

  4. Find Your Home

    This can be the most time-consuming of all the steps. Once you find your home, the rest of the process is relatively easy in comparison. Finding your home is not as easy as just visiting open houses, looking at MLS, or driving around to look at homes for sale. Without clear criteria of what you need and what you can afford, finding a home can become extremely frustrating in a very short time.

    Your real estate agent can help find your home by completing the searches for you. By providing your price ranges, needs, and wants to your realtor, homes that meet your criteria will be the ones you take the time to visit. Having a clear understanding of what you want to buy will make this process a lot easier, and take a lot less time. Factors you should consider include:
    • Price range
    • Location
    • Size of home (number of bedrooms, bathrooms, etc.) and yard
    • Type of property (condo, townhouse, detached house, etc.)
    • New home build or resale
    • Move-in ready or fixer-upper
    • Features of the home (garage, air conditioning, fireplace)
    • When you want to move

    Your agent should ask you about most of these factors, and probably more. Keep in mind those features that are definite needs (for example, 3 bedrooms for a family with 2 children) vs. wants (an in-ground pool, a fireplace). In other words, what are deal breakers, and what would be nice to have. Make sure your agent knows what your deal breakers are.

  5. Purchase Your Home

    There are three phases to purchasing your home. First, you have to make an offer (and have it accepted). Second, perform your due diligence. Third, have the sale close. Once you find the home for you, your real estate agent will prepare the paperwork for your offer, and negotiate the best terms for you. Before you make an offer, you should have a firm idea of what you are willing to pay for the house, and what you want.

    When the offer is accepted, there is a period of time for you to perform due diligence on the property. This is important, as you cannot return a house once you have bought it. During this time, you will re-visit your mortgage provider to ensure they will finance the purchase, contact your insurance company about insuring the home once it's purchased, and go through a home inspection with a home inspector. When these steps are completed successfully in the allotted time frame, the house will be sold to you.

    The closing date is the date you actually take possession of the home. This is at least a few weeks to a month after the offer date (usually, although it can go shorter or longer). During this time, you and the seller will be preparing to move, plus your lawyer will be carrying out legal searches on the property on your behalf. At close date, your lawyer sends your payment (made up of the money from your mortgage provider plus your down payment) to the seller and you get the keys!

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)