6 Steps to Consider When Buying Your First Property

There are many aspects to consider when buying your first property. That’s why Riva Title Company in South Miami put together this post to break down the process and help you decide where to start.

Estimate Your Budget

When planning on buying your first property, your first step is to estimate a budget you can work with to start looking at property and lender options. Estimating a budget is an excellent way to make a sensible decision on what type of property you can afford and in no way is meant to discourage you. Think of making a budget a way to plan and have a clear picture of your finances. According to the Federal Housing Administration, you shouldn’t be paying more than 31% of your income for your house. Keep that number in mind, as buying a home beyond your means could put you at risk of foreclosing on it. Instead, look at places below your price limit, that way, you’ll be able to bid higher if you enter a bidding war. Budgeting tip: Include other house expenses like repairs, property taxes, and homeowner’s insurance in your budget, that way, you’ll be prepared when it’s time to close.

Learn About Housing Rights

Knowing your homeowner’s rights is also essential when planning to buy property. Understanding the basics of the Fair Housing Act, the Real Estate Settlement Procedures Act, the ins and outs of predatory lending, and your rights as a homeowner are great resources to help you learn more about the topic and avoid issues when buying property.

Buying your first property can seem overwhelming, but having the right home-buying team can make it easier. Call the experts at Riva Title Company with all your questions about title insurance at 786-787-7888 to learn more.

Find a Reliable Lender

Next is to find a reliable lender; this step is essential to your buying process as your loan will dictate what type of property you can aspire to purchase. Some important information you need to know when researching lenders is the interest rate they offer you and the terms and conditions on the loan. Having a pre-approved loan when making an offer on a house can help the sellers take your bid more seriously. A pre-approved loan can also help the closing process in going much more smoothly. As a last note, lenders sometimes offer larger loans than what you had expected, but always remember that you don’t have to accept a larger loan. Stick to your budget and don’t feel pressured to go higher than you’re willing to pay.

Look for Homes That Interest You

Looking at homes is probably one of the most exciting steps in the process of buying your first property. An excellent way to start is by making a wishlist of essential features for you and your family, like what type of floorplan you like, how many bathrooms and bedrooms you need, and if a backyard or front yard is essential to you. In this list, you can also include things like architecture style and build year to narrow down your search. Other things that people include in their search for houses are a good neighborhood, nearby amenities, access to public transportation. It really depends on your lifestyle and what you value, so keep these in mind when looking for homes.

When buying your first property, it’s good to have an experienced title company in your team. Call Riva Title Company at 786-787-7888 and let them tell you how they can help you in the process.

Submit an Offer

Once you’ve found a house you’re interested in, it’s time to submit an offer. Remember that making an offer doesn’t guarantee you’ll get the property you want, but it is the first step in the process. If you hire a real estate professional, they should assist you in the process and submit the offer for you. Real estate agents must present all offers submitted in writing to the seller. Once the seller has your offer, they will decide to take it or not.

Go Through the Closing Process

Lastly, if your offer is accepted, the closing process will begin. Closing means transferring documents and money from the buyer to the seller to transfer ownership of the property. Every step in the process should be outlined in the buying contract, and they should be followed before the closing date.

For more information on title insurance and what a title company can do for you, call Riva Title Company today at 786-787-7888 and let their expert agents answer your questions.