If you’ve been through the process of buying a house before, then going through it a second time, or third time won’t seem so daunting. Because you’ve done it before, you tend to know what to expect, when to expect it and you will have a pretty good grasp on the complete process of how to buy a house.
However it’s easy for those who are buying their first home to experience a form of “information overload”, where there is so much information and advice churning around inside, that it can become easy to lose sight of the big picture.
The overall picture of how to go about buying a house becomes blurred and actions that need to be undertaken can be forgotten. I’m relating this to my own experiences in buying my first home. I got so overwhelmed by the number of things that needed to be done (approaching lenders, deciding between hundreds of different mortgage products, viewing properties, arranging house inspections, finding an agent, getting the offer right, negotiating settlement etc. etc…………..), that I lost focus and motivation.
At the time I’m sure some kind of visual reference to the process of how to buy a house would’ve helped me keep my eye on the final goal, while giving me the cues to take care of all the small steps along the way (and not so small steps!)
A very basic flowchart of how to buy a house might look something like this:
Decide to buy a house
Get a loan
Look at houses for sale
Make an offer on a house
Accept or reject the vendors counter offer
Negotiate the terms of the sale
Take care of the legal matters (conveyancing or settlement)
Move in!
Of course during each stage of the how to buy a house process there are many smaller processes that need to be considered or addressed before moving onto the next stage.
For example when you make the decision to buy you need to examine your financial position – complete a financial budget, can you afford to buy a house, do you need to live in a particular location for work, how many bedrooms will you require….
Get a loan – which lender is best for me, what mortgage product is best for me, fixed or variable rate, getting pre-approval for a loan, are there any Government incentive programs that you may be eligible for, what deposit or downpayment will be required, what other associated costs will there be such as taxes and stamp duty….
Viewing homes and making an offer – researching the housing market to get a feel for house values in that area, arranging viewing times, finding an agent, arranging building inspections….
Taking care of the legal matters – do you employ a solicitor, a conveyancer (or settlement agent), or are you able to d.i.y. this process….
Moving in – the settlement terms you negotiated will dictate when you can move in, arrange movers or move yourselves, conducting a post-purchase inspection what will be the moving costs involved….
These are just a few examples of the undertakings and consideration required for the various elements of the how to buy a house process. For many first home buyers this can be overwhelming and keeping track of everything can be difficult. Having at least some kind of blueprint or plan can really help smooth the entire process and can ensure you don’t overlook some of the factors involved.
More on these individual “how to buy a house” elements to come in future articles.
