Buying a house can be a thrilling and emotional procedure. Before starting your home search, you’ll want to understand the ins and outs of homebuying. This will enable you to make decisions that are the best for yourself, your family, and your pocket.
What to ponder
Is now the best time to buy?
Yay and nay. Mortgage rates reached record lows in early 2021 and have stayed low by historical merit throughout the year even as they see-saw. However, the strong demand for homes shot prices up and stifle many potential homebuyers. According to statistics, house prices rose by 18 percent between September 2020 and September 2021. Time may be running out to lock in an affordable mortgage because experts predict interest rates will continue to trend upward this year. In most commercial viable areas of the country, Realtors reported intense competition for homes last year, with some properties getting dozens of offers and going into contract within days of being listed.
That reality has created inevitable concerns about buying at the peak. Home values go up over time, but there is a possibility that prices in some places have hit a plateau.
Should I buy a house?
Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook if you go in well-prepared and with your eyes open.
When thinking about buying a home, consider whether you want to put down roots or maintain flexibility with your living situation. How secure is your job, and can you comfortably budget for home repairs and maintenance on top of monthly housing payments? Are you ready to stay in one place, and do you have kids or family members to consider?
When should I buy a house?
Any time, you can literally buy a house anytime you want. But sometimes, you want to buy when there are many listings typically hitting the market – what stands out for the Nigeria real estate market though is that it’s still in its infancy stage, so there is room for growth. Development is springing up the more, so you will always see the best opportunity to buy. The market still hasn’t quite fully returned to normal since the coronavirus upended that schedule, however.
At any rate, your own financial readiness is more important than the time of year. This means having your finances organized and your credit in order so that you’ll be able to smoothly secure a reasonable mortgage.
In addition to a down payment, potential homebuyers should have enough money set aside to cover closing costs, which can range from 2 percent to 4 percent of the purchase price.
When budgeting for your monthly mortgage payment, factor in not only the principal amount and interest, but also property taxes, homeowners insurance, homeowners association fees (if applicable), plus private mortgage insurance if you’re putting down less than 20 percent. Don’t forget to set aside money for ongoing maintenance and those unexpected repairs that are bound to pop up, too.
Here’s a step-by-step guide on buying a house:
Understand why you want to buy a house
Check your credit score
Create a housing budget
Save for a down payment
Shop for a mortgage
Hire a real estate agent
See multiple homes
Make an offer
Get a home inspection
Negotiate repairs and credits
Secure your financing
Do a final walk-through
Close on your house
Before closing, review the closing disclosure carefully and compare it to the loan estimate to ensure closing fees and loan terms are the same. Ask questions about your loan and correct any errors (like your name or personal details) before you sign closing paperwork.
On closing day, review all of the documents you sign carefully, and ask for clarification on anything you don’t understand.
Make sure you’ve been provided all house keys, entry codes, and garage door openers before leaving closing.
You’ll leave closing with copies of the paperwork (or a digital file) and your new house keys. Be sure to store your paperwork in a safe place for future reference.
Once all of the paperwork has been signed, the home is officially yours and you’ll get those house keys. Congratulations! Now comes the fun part: moving in and making the house your home.
Buying a home involves a lot of moving parts and complex steps, but this guide — along with the professional expertise of your real estate agent and mortgage lender — can help you navigate the process smoothly. By doing your homework ahead of time, you’ll have more confidence in your decision and relish getting those coveted house keys on closing day. Ready to shop for a mortgage? Reach out to us through our contact or social media pages. Click this link to get started.