Buying a house that you can call your own is certainly a great achievement. The perks that come with owning a house even make the long process worthwhile. You can have living security, create your dream space, have more control over costs, build equity, and get that pride of ownership that other people only dream of.
However, buying a home also comes with challenges that require effort and time to overcome. While this process is typically a long one, it doesn’t mean that you need to wait for a long time to get your first home. In this guide, here are some tricks to speed up your home buying process.
1. Save for out-of-pocket expenses
Thankfully, there’s a mortgage that allows individuals and families to purchase a house without the need for outright cash. But besides the house’s purchase price, there are out-of-pocket expenses that you need to take care of. This is exactly why you need to save cash. You can delay the home buying process if you don’t have the liquid funds to proceed with the closing.
First off, you’ll need to figure out the different closing costs included in the process. Property-related costs involve escrow fees, appraisal fees, HOA fees, property taxes, home inspection, and flood certification. Lender fees, attorney or title fees, and origination fees are parts of loan-related costs.
It’s best to save early for these costs to avoid halting your progress. You can also work with a loan officer or real estate agent to check if you can reduce the fees. Other out-of-pocket expenses to save for include your down payment and the earnest money.
2. Look into mortgage options
When it comes to choosing a mortgage, it’s best to always explore your options. Each one varies in eligibility requirements, down payment, and benefits. There are conventional mortgages, which are usually targeted at first-time home buyers and lower down payments. If you’re looking for something that’s guaranteed by the government, you can check out VA, USDA, and FHA loans.
As for the mortgage term, the usual option is the 30-year-fixed-rate mortgage with an interest rate that doesn’t change. If you’re opting for lower interest and don’t mind higher monthly payments, a 15-year loan would be ideal. Look for a reliable mortgage lender that offers a variety of loan programs. The more they have, the better chance you have to find the exact loan that you need. Plus, most lenders would also be happy to help you out with this.
3. Hire a good surveyor
A property valuation is essential for securing your home loan. For this, you’ll need a qualified surveyor who can carry out a detailed inspection of the house’s condition. Their job is to look for structural problems, point out major alterations or repairs needed, and give professional commentary regarding the quality of the house. If you want someone who has better knowledge and experience with your area’s market values, hire a local surveyor. But if you want someone with legitimate indemnity insurance, look for a surveyor who’s RICS (Royal Institute of Chartered Surveyors) qualified.
While having a property survey isn’t mandatory, it’s useful for avoiding unwanted and expensive costs for the house purchase. There are also different types of surveys distinguished by their rates and depth of inspection. A few examples include a condition report, homebuyers report (survey and valuation), and building survey. Book your survey as early as possible to prevent any delays in the process.
4. Find a reliable solicitor
Overseeing the legal aspects of purchasing a home can be confusing, whether you’re a first-time buyer or not. This is where using a solicitor is beneficial. This professional can ensure that the ownership of the property will be lawfully transferred to you. You can search online to find the nearest solicitors in your location. Most real estate agents can also recommend a good solicitor. Just watch out for any introduction or referral fees.
Solicitors are responsible for reviewing the contract of sale, preparing the legal documents for the purchase, and navigating your rights as a buyer. Hire a solicitor with an excellent track record, reasonable rates, and can quickly respond to your emails and calls. On top of that, you need someone who can take quick actions when transaction issues arise.
Buying Purchasing your first home can surely be a thrilling and fulfilling experience. Make it easier for you or your family to get your dream house by following our tips here. Take note though that it’s important to always consider your situation first before pushing for any of these tricks. Consult a financial advisor or real estate expert for professional assistance.