Is Buying a Home Stressful?

Short answer: of course. It's an emotional roller coaster with lots of money involved. Preparation can however make things so much easiest. Read on for some tips on how to stay cool and find your new home.

The home buying process can be stressful

People say moving is one of life's most stressful situations and we'd like to count the buying process as part of it as well. The big problem many people encounter when dealing with large purchases like a house, whether it's a first home or a new one, is a lack of knowledge.

Stress and anxiety are going to be part of the process, but at the end of the day, you can find yourself in your dream home without having exorbitant costs.

If you are doing this for the first time, look into hiring a real estate agent. Some people think that they only add to the cost but in reality, more buyers regret not using one because they learn about how much they could have saved in the end.

Buyer's remorse is a very real thing and you don't want your finances tied up in a house that you do not like. Buying a new house is a complicated process so let's take a look at what you should consider.

What to keep in mind when buying?

Stay flexible.

While it's good to have an idea of the type of house you're looking for, you can't fully predict what will be available in your range.

Be patient and take your time. The next stage of your life where your family will live is something you do not want to rush. It can add a lot of stress to the process if you remain closed off to the realities of the real estate market.

Your real estate agent has undoubtedly had clients who let great deals slip away because they were too picky. Feelings are very important when it comes to houses, but wanting too much control over what your house will look like will have you waiting for perfection. It will never come.

A little flexibility will go a long way.

Think about the future.

Are you planning to start a family in that new house or strictly want it to be a place for friends or your little oasis? Even if the neighbourhood looks great now and the property feels like a steal, try to dig up why it's cheaper than other comparable homes.

Don't limit yourself to online listings.

A real estate agent often knows of homes before their listings go online. It can't hurt to browse to do some research and assuage your worries about cost but wait to make a rash decision until your real estate agent shows you some gems that have yet to go on the market proper.

The stress and anxiety of the home purchase process can lead you to make rash decisions, but with the sums you're paying, consult with your realtor.

It's important to find the right home for you

While flexibility is important, you can't get to the closing date and realize you're short one bedroom. There are plenty of homes for sale, so try to stay patient and look around until you find the house that's right for you.

It's easy to get caught up in seeing all the options available but try not to let yourself burn out along the way. If there is something wrong with one of the houses you look at talk about it.

Between managing the escrow account, figuring out closing costs, and keeping your agent in the loop, it better be worth it in the end.

You need to be prepared for the financial commitment

A word you will hear often is "mortgage," this is how people afford homes. You put down a downpayment, which is usually 20% of the house's total price and your mortgage lender will put down the rest.

Your real estate agent will probably be working with a mortgage broker, someone who shops around different lenders to find you the best deal on the market. This can make a significant difference in your daily life as it determines your monthly payments for the next five years (it can last longer or be shorter but this is the most common time frame).

A real estate transaction requires a lot of money but a good or great credit score can go a long way.

Sellers will also be more likely to take you seriously if you have done your research. For example, if you can put down an earnest money deposit without delay or if you are pre-approved for your mortgage.

What is an earnest money deposit?

It is a sum of money you put down as part of the buying process, it shows the buyer you're serious about the purchase. That can help the current owner to focus on you and improve your chances of securing the house. There is usually a clause in the contract you will be signing as part of the process that allows you to get your deposit back if the house does not pass a home inspection or is valued for less than its selling price.

What is pre-approval?

This is a confirmation from your lender about the mortgage rates and the principal that they think you will be able to pay. Your credit score has a lot of influence on whether or not you can get pre-approved. This also shows the seller that they are not wasting their time by dealing with you. Though you may not have the total in your bank account, pre-approval means that the lender is confident enough.

What is an escrow account?

A borrower can ask a lender to manage the proceeds from a real estate sale until its terms have been satisfied. In real estate escrow services, the borrower appoints an escrow agent, who, with the instruction of a borrower, holds and regulates monies from a real estate sale. The escrow money is then passed on to the appropriate third party at closing - the party selling.

There's a lot of paperwork and red tape to deal with.

Beyond financial documents, you also need to look at the legal requirements you need to fulfill to buy the property. There is a lot of paperwork and procedure that needs to be completed, which can seem overwhelming. However, it is something that both the buyer and seller need to deal with for the sale to go through.

You will get an inventory list of any items that are included in the sale (appliances, tools, etc.) and you will need to get an appraisal of the property.

Your realtor should be able to tell you everything that needs to be done, but you need to have an idea about what steps are needed so you know how prepared you are.

You need to pour over the inspection's details to see what costs may come up. Most people do not pay close enough attention to things like the state of the house's insulation or the last time certain appliances were replaced. It might be tempting to sign quickly so that the house does not go back on the market but real estate agents will often ask you to take your time to pay close attention to the critical things.

Buying a home is a big decision - make sure you're ready for it!

Just because your friends are moving into houses doesn't mean that you have to put yourself through that stress if owning a home is not the right decision at this point in your journey.

It's a big commitment, not just in terms of payment. A house says that you are planting your roots for the next few years. It's not just the financial strain that can induce stress, it's the idea of being tied down.

All the top tips in the world won't help you get through the ordeal that is buying a house if the root of the issue is that you're simply not ready to settle. There could be things you still wish to experience, like travelling around the world for work, that would mean buying an empty house.

If you are looking at homes because you think that's what your partner wants, are you sure that that's what they want? As potential buyers, you need to be on the same page and if something feels off, then it's time to talk before you contact an agent.

Then again, if you know you're ready as a buyer, then it's time to do some research. Look at the profiles of local realtors, check out the houses for sale while waiting to hear back from your pre-approval, and determine whether or not you will want an escrow account to manage the payments.

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