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10 Steps in Buying a Home in Cagayan de Oro

Purchasing a property is the most ideal investment one can make. Owning your dream home can be very rewarding, and challenging at that since it requires time, effort, and most importantly, money. Without these, owning your dream house will be next to impossible.

Cagayan de Oro had captured the attention of the homebuyers market because of the several advantages of living there. Developers, too, are eyeing the city as a significant contributor in the real property industry.

Before anything else, don’t let the overwhelming process get into you, leading you to make impulsive buying decisions. Be mindful of the things you do to avoid costly mistakes. Like the typical home buying process, there are things to consider when you want to invest in a house and lot in Cagayan de Oro.

Step 1: Start your research early

As soon as you decide it’s time to purchase a property, you have to start your search particularly your homeownership options. You can base your research on websites, newspapers, magazines, real estate flyers or brochures. Make sure that you already have preferences in mind to make the search easier and faster.

If you have a preferred developer, search for Ayala Land properties in Cagayan de Oro, for instance. The search engine will display all the property projects Ayala Land in CDO from Amaia Scapes Cagayan de Oro to Allegria Hills.

Step 2: Determine how much house you can afford

Real estate investment can have a significant impact on buyer’s finances. That is why most lenders would recommend homebuyers not to purchase properties that cost more than their annual income. Some experts suggest that the household expenses should not be more than 30% of the monthly income.

Not just the price of the property itself, but the overall expenses you would possibly make after buying the property. Knowing the financial aspect of the real estate investment would prevent you from having any troubles financially. Notably, this and first step can interchange, depending on which step you are more comfortable with to come first.

Set 3: Get prequalified and preapproved for credit for your mortgage

Getting approval from your lender would determine whether you are qualified to invest in a property or not. Filipinos are not very particular with their credit scores, but once you start filling out application forms, you’ll realize that most banks require you to have a good credit score. The score highlights your capacity to pay whenever you incur debts.

To get prequalified, you have to provide some basic financial information such as your income and the amount of your savings to your mortgage bank or lender. Lenders would usually base it on your credit history to determine whether you are a good payer or not. Good payers have a higher chance to get preapprove for a housing loan.

Step 4: Find the right real estate agent

Hiring a real estate agent is important, especially when you are a first-time homebuyer. Agents will help and guide you all throughout your real estate transactions until you achieve the home you want. Moreover, they will be the one who will explain and let you understand the process of purchasing a property.

You can do without a real estate agent if you understand the nitty-gritty of the buying process. That is, if you truly understand the process. If not, you might as well hire one. There are developers, however, that can connect you to a Property Specialist so ask if this service is available from your chosen developer.

Step 5: Shop for your home and make an offer

As a homebuyer, you have to start searching for homes within your price range. The goal is to buy the best house that your budget can afford. List down what features of a house you will need; these will be your priorities.

When on an actual house hunt (open houses and ocular visits), taking notes, pictures, or videos on all the possible homes can help you in determining what property best fit your budget and preferences. Do not just focus on appearance; you also have to test the plumbing, electrical, windows and doors and other things inside the house. Make sure to check if there are any damages and try to fix them before purchasing the property.

Step 6: Get a home inspection

For safety and standard purposes, there will be an inspection of the property before selling it to the buyer. This is for checking for signs of structural damage or things that need fixing if there are any. Usually, your real estate agent will help you arrange to have this appointment with the professional home inspector.

A home inspection is necessary even if the houses for sale are newly built and previously unoccupied.

Step 7: Work with a mortgage bank to select your loan

When it comes to home investments, lenders are known for having a broad range of competitively priced loan programs with exceptional customer service. Mortgage bankers are usually responsive when it comes to assisting homebuyers to make the process much easier and faster. Moreover, they will offer you some options that would best fit to your priorities.

It is best to talk to your mortgage banker regarding your homeownership options. When you do so, it would be better to include the agent in the conversation.

Step 8: Have the home appraised

When it comes to the value of the house you are buying, lenders will arrange for an appraiser. They are responsible for letting the parties know they are paying a fair price for the home. The appraiser is usually a member of a third-party company and is not directly associated with the lender.

During an appraisal, make sure that you are physically present so you’d know what the report will include. If there are any issues arising from the report, with the guidance of the agent, you’d know how to proceed with the process.

Step 9: Coordinate the paperwork

When purchasing a property, you have to expect that there will be a lot of paperwork involved. You can delegate all the paperwork to your agent. Don’t sign any document, though, without your agent explaining to you what it is and what it entails.

Step 10: Close the sale

To make the transaction official, you will have to sign the required documents. It would take days before your loan is funded after the paperwork is returned to the lender.

Indeed, home buying is a lengthy and complex process. Knowing and understanding these steps are a must for a homebuyer. Good thing, there are many people who can help you along the way onwards achieving your dream home.

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