One of the biggest financial decisions you'll ever have to make is buying a house. It's more than just looking at what looks good for you and your family; it's about considering each stage of the process and the many factors that come along with it.

But that doesn't mean that it's always complicated. There can be a way to simplify the process and make smart and efficient decisions.

In this post, we'll help you by sharing more about the process so buying real estate in Indiana can be easier and smoother.

Tips When Navigating The Home Buying Process

Establish A Budget

When you visit the ideal home, it can be depressing to learn that it is out of your price range.

Determine how much you can afford to spend to save time and disappointment. The general recommendation is to spend no more than 2.5 times your annual pay. You can use online budget estimators to find an appropriate house budget range that works for you.

Be sure to review other expenses on your bank statements, such as cable bills, gas, entertainment, food, and the like, to see where you may cut back on spending. 

Get A Mortgage Pre-Approval

Being pre-approved for a mortgage rather than just being pre-qualified is the best approach to gaining an advantage in the competitive sellers' market. Pre-qualification would entail that lenders assess a homebuyer's affordability based on the data provided by the buyer.

Lenders who have determined how much they can lend after confirming the borrower's (buyer's) income, assets, and credit score are said to be "pre-approved." Pre-approval would expedite the loan acceptance and underwriting procedure even though it is not regarded as a loan commitment! 

Start Your House Search

You can employ a real estate agent to assist you in your search for affordable housing. The best course of action is to make a list of your key priorities, such as the size of your home, whether it is a beginning home or a lifetime home. Looking for a rockstar real estate agent? If yes, we're here to help!

To help you further limit your options when looking for a home, keep the following in mind:

• Accessibility to public transportation
• Backyard and/or pool
• Number of bedrooms and bathrooms
• Overall house condition and repair needs
• Overall location and nearby attractions
• Price
• Property value trends
• School district ranking
• Square footage
• The property and/or real estate taxes

Rank the priorities from least to most important for your agent, who will show you a list of homes fitting your specific criteria.

Sleeping Costs

Owners of first-time hours might not be familiar with sleeper prices. These are costs that you failed to account for when making your budget. It's a mistake to solely think about the mortgage payment and ignore those hidden expenses, which could quickly build up!

Homeowners' insurance, property taxes, association dues, yard upkeep, utilities, repairs, and other expenses would be considered sleeper charges. If these expenses are not planned for, your disposable income will be reduced, which will make it more difficult for you to pay your mortgage. 

Limit Credit Use

Before you use your credit card to make purchases or apply for store credit, stop and think. Until the loan is closed, the lending company is free to check your credit at any moment. This would imply that any strange or significant financial activity could ruin your deal's chances!

If an unexpected or unforeseen circumstance arises, discuss it with your loan officer to find out how it might have impacted the application. 

Have Your House Inspected

Home inspections are still a requirement when buying a property, even though lenders won't demand them to obtain a loan. An expert will examine the home during a home inspection to search for any current or potential problems.

They will perform several checks, including testing the electrical systems and the roofing as well as making sure the appliances function as promised. You'll be given a list of the issues found after you're done. 

Look carefully over the list for any significant problems or substantial health risks. Before concluding a sale, get in touch with the seller and ask them to fix the problem, such as replacing broken shutters. Move on to another house if things don't work out. 

Without a home inspection, you can be forced to make expensive repairs that you'll be responsible for paying for after the sale.

Obtain A Home Valuation

Home appraisals are reviews that inform you of the current value of the home. Before making a mortgage-financed home purchase, you will require an appraisal.

Given that they are unable to lend more money than a home is worth, lenders will demand this. If the evaluated value is ever less than the offer, acquiring finance could be difficult.

Additionally, buyers must include an appraisal contingency in their offers so that, if the appraisal comes in below the asking price of the property, they can withdraw their offer or renegotiate the price without losing their earnest money deposit. 

Request Repairs

You must ask the seller to address any faults found after reviewing the results of the home inspection. This can be done by:

• Requesting a lower purchasing price
• Ask the seller to provide credits for the closing fees.
• Before closing the sale, request that the seller address all issues

List the problems and the requests you have, and your agent will send this information to the seller's agent. Alternatively, you might bargain with the vendor directly.

Conclusion

Without a doubt, the stressful process of purchasing a property can reduce the enthusiasm for investing in a new home. However, knowing what comes next can make you feel a little calmer after you are familiar with the procedure and what it entails. That way, you can gather your thoughts, choose a home wisely, and then take pleasure in it after making the significant purchase! 

We hope that this post about the home-buying process was extremely helpful to you. Keep these guidelines in mind if you're buying a house to help you get around a bit more easily. 

If you have questions or want to learn more about the home buying and selling process, our team at RE/MAX Advanced Realty - Indy Home Pros is here to help!