Essential Steps to take when Buying a HomeSubmitted by Clover Leaf Financial, LLC on September 8th, 2020
Essential Steps to take when Buying a Home
If you want to own a house one day, you aren't alone. Homeownership remains an integral part of the American dream, according to Forbes. People like the feeling of belonging that comes with owning instead of renting, and enjoy the added possibility for personalization that owning a property provides. Your house is one of the biggest investments you will ever make, so you want to go through the process carefully. A mistake—like buying a home you can't afford—can mean losing time and money and cause you unnecessary stress. Review the below steps to prepare for the home-buying process.
Figure out your financing needs
Before you even start looking at the housing market, figure out your financing needs. This allows you to set a strict budget and shop for properties specifically within that price range. This ensures that you aren’t tempted by real estate you can’t really afford, and spares you the heartache of passing on a property because you don’t have the needed cash.
To get an idea of prices, check out local listings. This lets you set search preferences like price, neighborhoods, housing styles, and more. You'll also need to look at the different types of home loans before you shop. If you're looking to save money, a conventional loan would be ideal. Conventional loans come with either an adjustable rate (which can mean lower rates at some point) or fixed rate (which never changes throughout your loan's term length). It's up to you to decide which loan would be best for you.
There is a lot to consider when going over your finances before buying a house. For tailored advice on financial planning, contact Clover Leaf Financial, LLC.
Take the time to visit properties in person
Don’t just scope out houses online and pick your favorite. If you feel that it's safe to do so, and it is allowed in your area, consider viewing any potential property of interest in person. Photos won’t give you the full impression. Open houses are a fantastic opportunity to visit properties. You can walk through the entire space and get a feel for what it’s like, inside and outside. In most cases, either the owners or the realtor will be on hand to show you around and answer questions.
Ask them to tell you more about the house to get the conversation going. Other topics to ask include the current state of the home (such as whether there have been any renovations recently), how much traffic is in the area, what the neighborhood is like, and how much the utilities generally cost. If you have kids, you might also ask about nearby schools.
If you can’t find a house you like on the market, build one from scratch
If you’ve scoured the market and simply can’t find a property that suits your taste, buying a completed house may not be the answer for you. The alternative is to build your own home from the ground up. One advantage of going this route is that you get to specify every detail of the design, from how many bedrooms there should be to how big you want the kitchen to be. If you’ve always dreamed of having a second-floor bedroom with a skylight and huge bay windows, you can literally craft this dream.
Of course, it’s going to cost you! It usually costs about $155,310 – $416,250 to build a new house. Not only do you have the cost of the land and building materials to account for, but also the fees for architects, engineers, contractors, plumbers, and more. Various factors impact just how much you'll end up paying, including the size, design, and complexity of the project in terms of the number of stories and excavation needs.
Whether you buy a ready-made house or construct your own, be patient as you tackle the home-buying process. All the steps, from finding a house you love to figuring out the financing, will take time. At the end of it all, you’ll have a lovely home to call your own.
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Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Additional advisory services offered through Clover Leaf Financial, a registered investment advisor and separate entity from LPL Financial.