Extension for Real Life
4 Homebuying Tips
If you've ever bought a home, you know it's exciting, stressful, and sometimes overwhelming. If you are a first-time home buyer or it's been a while since you bought a home, be sure you understand the process before you begin your search. (Photo by Adobe Stock/Shisu_ka)
Buying a home is exciting. But it can also be stressful. So, it’s important to be prepared and to understand the homebuying process.
The basic steps include:
Get ready to shop. Before you begin looking for a home, decide how much you can spend on a home, get your finances in order, and gather the paperwork you will need when you apply for a mortgage loan. Check your credit report and take steps to make corrections if necessary. You also should take an in-depth look at your budget so you know how much you can afford to put toward your home purchase. Once you do buy a home, also think about leaving room in your budget for regular home maintenance and repairs that every household budget should include.
Explore loan choices. There are many kinds of mortgage loans. Take time to explore and understand all your options for a mortgage. Get quotes from multiple lenders. Many types of mortgages require a down payment. Make sure you can meet this requirement.
Choose a mortgage loan. Once you’ve evaluated your budget and gathered all the offers, you can decide what loan is best for you and begin filling out the mortgage loan application. You can get prequalified and preapproved for a loan, but there may be fees associated with this process.
Make an offer on a home and close the purchase. Once you’ve decided on a home you’d like to buy, you will make an offer to the seller. During this portion of the process, you will negotiate the purchase price and conditions of the purchase. Once an agreement is reached between you and the seller, various documents will need to be signed.
While you can buy a home on your own, the process can be overwhelming. The purchase of a home is the largest investment many people will make, so it is a good idea to enlist the help of some key professionals, including a real estate agent, an attorney, a home appraiser, and a home inspector.
If you are ready to begin the process of buying a home, our MSU Extension experts offer a four-to-six-hour homebuyer education course that covers buying versus renting, credit building, personal financial management, foreclosure prevention, the homebuying process, and understanding mortgages, inspections, and appraisals. For more information, contact your local Extension office or Becky Smith, Extension agricultural economist.
You can find more in-depth information about the homebuying process and resources to help you from the Consumer Financial Protection Bureau.
Our friends at University of Missouri Extension have a homebuyer’s resource guide to help you understand every step of the homebuying process.
Authors
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Extension Associate II- Agricultural Communications