8 Steps To Buy A Home Plus 7 Tips From Dave Ramsey

The Home Buying Process

Buying a home for most people is the most significant expense they will ever have. Knowing what steps to take will make the process less stressful and put you in the best position to accomplish your goal. This article aims to lay out the best path toward home ownership. Watch Dave Ramsey's 7 Tips For First-Time Home Buyers Video above for even more great advice.

 

We have broken the Home Buying Process down into eight steps. The eight steps work best when walked out in order. Steps one through four are the steps you take to get ready. You can't build a house without a building plan. The same goes for buying a home. Steps five through eight cover the house hunting to the closing.

 

How To Buy A Home

 

1.  Decide On Location:  When deciding where to buy a home, things to consider include local schools, cost of living in that area, crime, distance to shopping and entertainment, and how close it is to your job.
2. Prepare Your Finances:  You should only buy a home once you are debt free, have an emergency fund of three to six months of expenses saved, and have at least a ten percent down payment saved. Need help making a plan to accomplish step two? Contact us for more information.
3. Get Pre-Approved:  Connect with a mortgage lender and get pre-approved for a fifteen-year fixed-rate mortgage with a payment that is no more than 25% of your take-home pay.  Get Pre-Approved.
4.  Choose a Realtor:  Your home purchase is too important to trust a two or three-star real estate agent. Having a five-star agent who cares more about serving than selling you would be best.  Find a five-star agent here.
5. Shop For Homes:  This is where the real fun starts. Your agent will set up a customized search based on the specifics you have told them about the kind of house you want. As homes come on the market, your agent will schedule showings and take you through the homes.
6. Write An Offer:  When you find the right house, your agent will walk you through the process of writing the offer and negotiating the terms of the sale.
7. Inspections/Loan Process/Appraisal:  After the terms of the purchase have been agreed to by both parties, the next step is to conduct inspections of the property. During this stage, the bank will process your loan and evaluate the home you are purchasing.
8. Closing:  This is the day you have been waiting for! Closing takes place at a Title Company or Attorney's office. Closing usually takes about an hour. Closing is when you sign all loan documents and pay your down payment. At the end of the closing, you are the property's new owner.