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How Does the Process of Buying a House Work?

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  • Written By: C. Daw
  • Edited By: O. Wallace
  • Last Modified Date: 01 September 2016
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The process of buying a house can be quite difficult and daunting, with so many things to consider. It needs to be very well thought out because once complete; the person is stuck with a house, for good or bad, and a mortgage that usually takes decades to pay. To take some of the anxiety and uncertainty out of the process of buying a house, the homeowner-to-be should carefully consider these three things: the house (including its cost and location), the types of mortgage loans they can apply for, and their financial capability.

The first step in the process of buying a house is making the firm decision to buy one. Renting is always an alternative, and a reasonable one at that, considering the difficult economy today and the widespread incidence of foreclosures. The person needs to think carefully about what they want and what they can afford. They must be sure that they really would rather own a house rather than rent one.

Next, they should look for a house by searching online, in newspapers, or by hiring a real estate agent. They should also consider the location of the house. Consider the safety and security of the neighborhood, its distance from the place of work, and its accessibility to schools and commercial establishments. Of course, think about what kind of house is needed: how big or small, how many bedrooms and bathrooms, the style, and so on.

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The next step in the process of buying a house comes the more difficult financial part. It is a good idea to get pre-approved for a mortgage loan. Visit the bank or credit union, and talk to a loan officer about the situation. Once the buyer gets pre-approved, they will know exactly how much they can offer to a seller.

After selecting a house, choosing the right mortgage plan is the next and final step in financing a home. Learn the various home loan programs available from the lending institution that is being used. There are some that are specifically intended for first-time home buyers, others that are for people with good credit scores, and a few that are for people who have had credit problems in the past. Consult a mortgage broker to be well informed and to know all the options available, but be ready for a sizable down payment, which is almost always a requirement in purchasing property.

The process of buying a house often takes time. Aside from choosing the right house and scouting around, the paperwork alone takes a long time to process. Don’t rush things. Do everything right and think things over carefully because the house will have a big impact on personal finances and quality of life.

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