Deciding to Buy

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully

Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property.

Has Your Income Grown?

Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.

What to do before buying a home

One of the biggest financial decisions you can make is to purchase a home. As such, careful consideration and ample preparation are musts before you make an offer on a home and complete the transaction.

Before you shop for a home, here are five things to include in your to-do checklist.

1. Pay outstanding debts

   Work towards paying any outstanding debt, however big or small, before you apply for a mortgage loan and search for a home. Doing so will improve your credit score, lower your debt-to-income ratio, and positively affect your loan application.

2. Settle disputes in your credit report

   Get your credit report from firms such as Experian, TransUnion, and Equifax and carefully examine it for discrepancies. If you find any, dispute these as early as possible to clean up your credit.

3. Get pre-approved for a loan

   With your credit score and finances in order, apply for a mortgage pre-approval with your preferred lender or bank. A pre-approval letter is now often required by sellers as it shows a buyer’s financial capability to purchase a house.

4. Build a down payment fund

   Putting a down payment is a standard prerequisite for qualifying for a mortgage and buying a house. People usually put down 10 to 20 percent, but it is entirely possible to only put down three to five percent and even lower, depending on the mortgage loan you chose.

5. Find a real estate agent

   The right real estate agent by your side will make the next steps of the home buying process clearer and smoother. Look for one based on the real estate market and property types you’re interested in. For instance, get in touch with our Salt Lake County realtors if you are thinking of buying residential real estate in Salt Lake County.

The next steps

After making the necessary preparations, you can proceed to the next steps of the home buying process. This involves the following:

1. Searching for a home – You can do so by going online and entering relevant keywords such as homes for sale in Salt Lake County to get a glimpse of what is available in the market. Driving or walking around neighborhoods you are interested in is another way to look for houses for sale.
2. Making an offer – Once you find a house that fits your criteria, the next step is to make an offer. In addition to an agreeable offer price and your pre-approval letter, it is ideal to include an earnest money deposit and a letter addressed to the seller that declares your intentions for the house. Negotiation might occur before a sales agreement is made.
3. Closing the sale – The closing process is initiated by both parties signing the purchase agreement. The period, which usually takes 30 to 45 days, provides time for you and the seller to fulfill obligations. On the closing date, the sale will be finalized.

Browse our website or get in touch with us at 801.330.8986 or info(at)capitalrealestate(dotted)co for more home buying tips you can use in Salt Lake County real estate.