In the US, over 65% of Americans own their own houses. While homeownership comes with its own set of responsibilities and expenses, for most people, it’s still much better than paying rent to a landlord and not having anything to show for it in the end.

If you feel like it’s time to stop paying rent and start owning property, then you’ll need to know how to buy a house. Here are the 5 simple steps you need to take!

1. Set a Budget

Before you start searching for your potential new home, you need to determine just how much you can spend. After all, you can find a beautiful property but it can be double the amount of what you can afford.

So to save yourself some time, set a budget first. Look at how much you have in your savings account, your current income, and what your monthly spending is like.

If you’re going to apply for a home loan, then make sure your credit score is as good as it can be. Lenders generally won’t give out money to anyone with a debt-to-income (DTI) ratio of over 43%.

You should get preapproved for a mortgage before moving onto the next steps. This can help immensely with budgeting.

2. Start Searching

Once you have your budget in mind, start searching. The beauty of the internet is that you can search listings from the comfort of your own home. You can also set specific parameters so you won’t have to sift through hundreds of irrelevant results.

It might be worth it to work with a real estate agent when you buy a home. They have better access to ideal properties and can get you a viewing before others do.

3. View the Properties

On that note, always view properties you’re interested in. Buying a house is a huge financial commitment after all, so you don’t want to go off of photos or virtual tours alone.

Your realtor can attend these viewings with you to help make sure nothing’s out of order or being covered up.

4. Make an Offer

You’ve found the perfect house for your family and the realtor says it looks good. Now it’s time to make an offer!

Your real estate agent can help you negotiate. Back and forths are common, so don’t worry too much about them. If your offer’s accepted, then you’ll go into a real estate closing. You can have a home inspection done before closing if you wish.

5. Sign the Papers

Once the closing is done, you can then sign the papers that transfer ownership to you. Once that’s finished, then congratulations, you’re a homeowner now!

Know How to Buy a House

Now that you know how to buy a house, the process should hopefully be less intimidating. By taking the steps that we’ve outlined for you, you’ll have an easier time on your journey to being a homeowner!

For more about home buying, read the rest of our blog page now.