10 Steps to Home Ownership

Buying a house can seem like an overwhelming process. Some anxiety is expected when making a big decision like buying a home, but the steps are pretty straightforward.

Step 1: Clean Your Credit

How is your credit? If you need to take some time to get your credit cleaned up. This step can save you some money by helping you qualify for better terms on a mortgage.

Step 2: Set a Price Range

You will also need to figure out how much house you can afford. It is essential to run the numbers early to make sure you are walking into something you can afford. That range will also determine how much of a downpayment you need and the closing costs. Use a Utah mortgage calculator to help understand your budget and better plan for your upcoming financial moves.

Step 3: Limit the Field

What is your top price? How about the bottom? Is there a neighborhood that you are eyeing? In this phase, you want to limit the field so that you can make the best decision. Having a list of homes in a price range and neighborhoods that you are comfortable with can give your realtor a jumping-off point. It also keeps you grounded in what you can afford before you have a chance to get attached.

Step 4: Choose a Lender

Next, you will need to get a preapproval from a lender. When looking for a lender, the last thing that you want is a company that treats you like a database record and not a human being. Talk with a few places and get a sense of what the customer service might be like. Make sure that you are comfortable with the customer service and the lender’s rates before committing.

Step 5: Find an Agent

As a buyer, the real estate agent is free. The seller ends up paying the commission. That means there is no reason for you not to have an agent! A good agent will know the neighborhood, negotiate on your behalf, and walk you through everything you need to do when shopping for a home.

Step 6: Tour Some Homes

Work with your agent to schedule walkthroughs of some of the homes you identified while limiting the field. Finding a home that you like is important, but be practical too: Run the water, flip light switches, check the roof, and look for cracks. It is also a good idea to spend some time outside looking at other houses in the neighborhood. A lovely home in the wrong area may be a dealbreaker.

Step 7: Make an Offer

Once you finally find a home, it is time to work with your realtor to craft an offer. The offer should be based on comparable sales in the neighborhood. Also, make sure you have looked over the disclosures. In most places, the seller must provide known structural issues, natural hazards, and flood risks.

Step 8: Schedule an Inspection

It is highly recommended you opt for a home inspection. The cost associated is well worth the peace of mind knowing a professional has thoroughly examined the house.

Step 9: Finishing Your Financing

The lender will have more paperwork to be done, insurance to buy, and an appraisal to schedule. Be sure that you follow the lender’s instructions carefully and promptly to avoid closing delays! 

Step 10: Close the Deal

Closing will require quite a bit of paperwork and paying the closing costs. After the closing is done, you will get the keys to your new home!

If this list looks daunting, try not to stress. Find a realtor and a lender that is easy to work with, and it will be in your new home in no time!