An important purchase that involves a large sum of money sometimes generates a very strong emotion of stress, as is the case with buying a house. In fact, 40% of first-time homebuyers consider the experience the most stressful event of their lives. However, that’s not always the case.
If you’re nervous about the process, the following tips by SPV Mortgages can keep your stress levels low and keep you calm:
Work with the right real estate agent
No rule says you have to work with a real estate agent to buy a home, but doing so means you’ll have an expert by your side. From searching to crafting your offer to negotiating with sellers, a real estate agent provides professional guidance and leverages their network and experience so you don’t have to go alone.
Chances are they’ve already seen any issues you might run into and will know the best way to proceed. If you decide to recruit an agent, take the time to find the right one for you. Ask others for recommendations and interview multiple agents.
Find someone you trust, who has your best interests in mind, who understands your goals and who will help you achieve them.
Be flexible over time
One of the most stressful aspects of buying a home is that you are not in control of the timeline. Since the process involves multiple steps and relies on many moving parts, it can take anywhere from six weeks to a year or more.
The more flexible you are, the easier it will be to remain patient during periods of uncertainty or if steps take longer than anticipated.
Get pre-approved for a mortgage loan
You want to feel prepared for your next purchase, without worrying about falling in love with a property you can’t afford. Being pre-approved for a mortgage loan can give you the confidence and peace of mind you need.
Pre-approval is a process where you formally submit financial documentation to a mortgage lender, and they provide you with an estimate of the loan amount and interest rate you will receive.
Getting pre-approved gives you a better understanding of your earning power. Also, having a pre-approval letter on hand when you make an offer on a home shows sellers you’re serious and can give you an edge over other buyers.
Start the home buying process by pre-qualifying here, so you’ll know if you’re eligible for mortgage financing.
Save for start-up costs
You have budgeted for your home purchase and feel confident about handling future monthly mortgage payments. But before your offer is approved and you’ve secured a loan, it’s hard to know exactly how much cash you’ll need upfront.
Your down payment and closing costs may vary based on the final purchase price, competition and more. Since closing costs typically range from 2% to 5% of a home’s price, try to save as much as you can.
Try to save more for a down payment than you might actually need (while staying within budget). That way, you’ll know you can handle payments upfront when it’s time to close.
Focus on asking all the questions
Buying a home involves a lot of paperwork and specific terms, so don’t be afraid or embarrassed to ask what something means when you’re not sure what it means. Likewise, don’t be shy about asking sellers (or their agents) many questions when considering a property.
Many times, you really don’t have information about various things and you’ve to ask someone for that. You can’t
Be patient in the search for the “perfect” home
When you’re buying a home, you’ll probably hear “dream home,” “home forever,” and “home sweet home” a lot. What if you don’t find such a property fitting all your requirements? It can be daunting if you can’t find your ideal space, but a little perspective can help.
It’s unlikely you’ll find a house that’s completely spotless and you may have to make some compromises or prepare to make adjustments when you move in, and that’s okay. Instead of looking for perfection, make lists of your non-negotiable ideal home characteristics and let that guide your search.
Focus on finding a house with the essentials, and let your wishes be bonuses or improvement projects that can wait until later.