- Figure out how much you can afford. First, calculate your monthly income and debt. You also need to know your credit score (also known as FICO) to determine if your credit it good enough to get a home loan.
- Get pre-approved for a mortgage. There are several types of mortgages, including fixed, adjustable, conventional, government, etc. Shop around to determine what’s right for you. It’s recommended that you speak to at least five different lenders to see which will be the best choice in terms of interest rate and what you can current afford.
- Write down your needs and wants in a home. Location, type, price, square footage, architectural style, number of bedrooms and bathrooms, etc. Each of these will help narrow down your home search.
- Determine target neighborhoods. You should research neighborhoods you’d like to live in to see the crime rate, schools, amenities, shops, restaurants, etc.
- Work with a Realtor. You should choose an agent that knows your neighborhoods well. They also should have experience in working with buyers. Also, choose someone you get along with! You’ll be working closely with them for as long as it takes to find the right home for you.
- Browse home listings. Look online in the MLS and for sale by owner. Flag listings that interest you and bring them up to your Realtor so they can set up tours.
- Do research on each home you’re interested in purchasing. Determine the property’s fair market value, the reason for selling, property disclosures, etc.
- Make an offer. With help of your Realtor, write an offer on the house and include any contingencies. Decide upon a move-in date and list any repairs necessary.
- Finalize the deal. It may take some back and forth between your Realtor and the seller, but eventually, you will get an offer on the house that’s acceptable. Get the home appraised and complete a home inspection.
- Close. Review all of the closing documents and determine what’s needed for the final closing meeting.
Once you’ve completed these 10 steps, you’re hopefully a new home owner! Congratulations! Read through some of our other posts for home owners:
- 3 Low-Cost Resources for Furnishing a New Home
- 9 Low-Cost Decorating Ideas for Your New Home
- 3 Ways to Make Your New Ann Arbor House Feel Like a Home
Thinking about buying a new home? Check out our website for more on our brand-new, highly affordable homes in Michigan.