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SearchThe House Buying Experience
Buying a house is very unique experience. For most people this maybe happens once or twice in their entire life, for others it never happens. For those of us who are fortunate enough to do it once or twice (or more) it is still a unique experience every time it happens. The amount of paperwork involved is insane and the financial striptease that you have to make to qualify for a mortgage – it’s no fun. If you never bought a house, here is what you might have to expect.
Start with getting a real estate agent. Pick someone that is recommended to you. Preferably a friend or family member already used this realtor to buy or sell a house and you can benefit from this existing trust relationship. Everything is negotiable and so are the fees the realtor will charge. You have more room to negotiate in a depressed market or when you are selling a home at the same time. Be fair, the knowledge and experience a good real estate agent has to offer can be worth a lot. If you are only buying a house, not selling – the house seller will have to pay for the realtor fees and will pay your real estate agent.
The mortgage – this dreaded payment and money vehicle that allows us to buy a house we could never afford otherwise. Who wants to save money for 30 years to be able to buy a house?! So, usually you will need a mortgage. Again, preferably work with someone that was recommended to you based on an actual experience. Interest rates are usually the same across brokers. Banks are usually a little higher and more strict in regards to who they lend money to. Getting a mortgage is painful and many trees will need to be cut for all the paper (at least that is how it feels like). You have to send tons of income related paperwork and then you have to sign tons of disclosures and contract related forms in return. You will have to initial paperwork dozens of times and do not really expect to understand everything you sign or initial. That’s why it is good to work with a mortgage broker you can trust, because even though it is sad, there has to be a certain level of trust on your side as you would need to hire a lawyer to understand everything you sign and feel safe.
Once you are pre-approved you go house hunting and when you find a house you like you eventually make an offer. Hopefully the market allows you to sleep over this a few times. You are not buying a TV or a car, you are buying a house. It’s a huge expense and more difficult to sell if you do not like it. You make an offer and then the seller either accepts your offer or counter-offers you. You then either accept or make another counter-offer. It’s like a tennis match where you play the ball back and forth. Depending on how far you want to go, this process ends fairly quick or it can go on for a while. You will not always win though. Your offer is eventually accepted and you are on your way to homeownership. Congratulations.
Now it pays to work with experienced agents and brokers. They will help you to close the deal without you losing your hair. Be prepared for stress. Be ready for sleepless nights. Be ready for a big breath of relief once you hold the keys to your new home in your hand. All the trouble is worth it. Owning a home is a great accomplishment.
This article is part of a series of articles where we write about buying and selling a home.
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