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Running Head: STEPS ON BUYING A HOME

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Steps on Buying a Home
Student’s Name
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STEPS ON BUYING A HOME

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Steps on Buying a New Home

Introduction
Buying a home is one of the most critical decisions that people often have to make. Though
crucial, it is quite a sensitive decision that requires adequate research and consultation before
making any move. There is a lot of excitement that comes with the idea of owning a home.
Unfortunately, many people are often overwhelmed by the excitement and end making grave
mistakes. The real estate industry has been registering an influx of traders who purport to help
buyers link up with the sellers of their dream properties (Dey 2016). While most of them do clean
business, it is equally important to note that there is an existing significant group of unscrupulous
real estate agents who take advantage of naive buyers and sellers. Many home buyers have fallen
into the hands of such agents thereby losing large amounts of money. It is always dangerous to start
the home buying process before consulting widely. Therefore, it requires the prospective purchaser
to check his financial status well and ensure that he or she uses a reliable agent when the need
arises. An evaluation of the home buying process helps to explain the various steps to be followed
such as analyzing the buyer’s financial condition, looking for an estate and deciding on the right
insurance policy to use.
Financial Conditions
One of the mistakes that prospective home buyers make is embarking of the process of
purchasing a home before analyzing their financial conditions. Many of them rush into the process
hastily before checking whether they have the right resources for going through it. Owning a home
is usually a big financial investment. The buyer ought to accumulate the right resources before
deciding to start looking for a home. It becomes quite frustrating for them when they realize that
they don’t have adequate funds to pay for the houses after going through hectic procedures. The
initial step of the financial analysis is finding out the approximate price of the property that one
intends to buy (Armona, Fuster & Zafar 2016). Once the buyer knows the price, he or she should
then check whether the funds required are available. It is always advisable to buy an affordable
home that the buyer can pay for without much financial strains and struggles. While trying to
acquire properties that are way too expensive, people have entered into debts that have derailed
them for quite a long time. The financial analysis involves various aspects. The following are the
fundamental elements that ought to be considered when assessing the financial conditions.

STEPS ON BUYING A HOME

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An Explicit Understanding of the Financial Condition Involved
It is always risky to commence the home buying process without a comprehensive
understanding of the financial obligation that comes with it. Usually, buying a home involves
transactions of large amounts of money. In the recent past, the prices of estates have been
increasing rapidly within very short durations. The ambition to own properties has led to a great
demand for real estates. For this reason, many people have moved into that line of business that is
seemingly more profitable than other ventures. Unlike most properties that keep on depreciating in
value after purchase, real estates’ rarely lose their worth (Bhutta & Ringo 2017). Their value
continues to appreciate every single day. This aspect inspires a great motivation to own property.
Unfortunately, most buyers have little or no information at all about the financial venture of
owning homes. The consequences that follow such a scenario are always fatal. They either lose the
little money they have or enter into very enslaving debts. The burden of the debts causes them to
dispose the properties shortly after acquiring them. Sometimes, their creditors are forced to
auction their properties to recover the lent money thus leaving them homeless. The importance of
research cannot be underestimated when it comes to the home buying process. Buyers ought to
read widely about the properties they intend to buy. Additionally, they also need to study about the
critical steps of the home buying process to ensure that they violate none. The success of the home
buying process largely depends on the proper coordination of the steps involved (Druta & Ronald
2017). Violation of any of these procedures could lead to mistakes that often results in dire
consequences.
Seeking information from a trusted and reliable real estate agent is also a good method of
acquainting the buyer with the relevant information. In an industry where there are so many
agents, it is sometimes difficult to find the right dealer. Before engaging an agent, the buyer should
ascertain that they are certified with all the legal credentials. A real estate agent understands the
market better the buyer (Landry 2016). He or she is in a better position to advise the buyer on the
right decisions to take. Similarly, working with the bank or any other creditor helps to understand
the financial condition at hand. Once a buyer develops the desire to own a home, it is always
advisable for them to start a savings program. In the event that the seller demands a down payment
first, saving helps a lot in clearing the deposit. The purchaser thus secures the house while still
looking for the remaining amount of money.

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Another thing that a buyer needs to do while analyzing the financial condition is seeking to
know his or her credit score. Credit organizations need to be assured that the borrower is in a
condition to repay their money. Therefore, a credit score is a document showing the eligibility of
the borrower to benefit from credit facilities. It is issued after the credit organizations verify that
the buyer ...