Buying a house is one of the most exciting moments of your life. But it can also be overwhelming with so many housing options. For example, you might be thinking about relocating to Alabama. Or maybe you already live there and want to move to a new location. 

There are numerous homes for sale in Enterprise, AL, among other regions of the state. This easy-to-follow guide will take you through eight crucial steps to becoming a homeowner.

1. Review Your Finances

Buying a home is a major decision, financially and otherwise. In many cases, monthly rental fees are equal to or more than mortgage payments. So, why not just buy a home instead of renting? Unfortunately, that’s not a solution for everyone. Purchasing a home often requires a significant downpayment.

Checking your finances is essential before getting your hopes up and finding your dream home. Your financial health will play a major role in getting approval or denial for a loan or mortgage. If your finances aren’t in a place where buying a home is feasible right now, come up with a plan to improve your finances.

2. Decide On A Location

Alabama is one of the most underrated states in the country. It has a rich history in agriculture, music, and the U.S. space program, to name a few achievements. The state is famous among football fans for the intense rivalry between the University of Alabama and Auburn University. With its low cost of living and thriving economy, Alabama is quickly becoming a popular location for homebuyers. 

The southeastern U.S. state has ample room for everyone looking to move there. Deciding on where to live is widely dependent on your circumstances. Are you looking for the best schools in the state, the best job market, or both? Research or talk to people living in Alabama for first-hand advice on the best place to relocate. 

3. Find The Right Real Estate Agent

Finding the perfect real estate agent can come before or after you decide on where you want to buy a home. A real estate agent with a general knowledge of Alabama can advise on various locations. But an agent based around the area you plan to move to is a better bet.

A local real estate agent can help you find the best home for your family situation. They also know what is available or will soon be available. In addition to helping with your home-buying needs, real estate agents can also be a great source of networking within your new community.

There are several ways to find the right real estate agent. Friends, family, and neighbors are often the most common source of real estate agent referrals. Look for agents with strong online profiles, and check out their websites and customer reviews.

4. Get Pre-Approved

You’re getting closer to finding your next home, but pre-approval is a hurdle to your final goal. The pre-approval process can be stressful, especially if your finances aren’t great. After you find the right lender, you’ll be required to provide proof of income and assets and agree to a credit check.

Pre-approval isn’t always a necessary step, but it makes the rest of the process go smoother. For one, pre-approval determines if you are even eligible for a loan. Once you’re pre-approved, you’ll know the exact price range and be more attractive to sellers.

5. Go House-Hunting

With pre-approval secured and the help of a real estate agent, you’re ready to look for a house in your preferred location. Always be open to expanding your ideal area if you find a home you really love. What are some of the things you should look for in a home? A suitable size and layout and a well-maintained interior and exterior.

6. Get A Home Inspection

You can’t judge a book by its cover, and you also can’t judge a house by a new paint job. Buying a home is a huge responsibility. You’re on the hook for any repairs or replacements, both of which can be pricey. The best way to ensure the home is as good as it is inside as outside is with a home inspection. 

A home inspection should ensure that systems like plumbing, electrical, and HVAC are properly functioning. It is also necessary to conduct a thorough inspection to check for potential structural issues or damage.

7. Close The Deal

Congratulations, your home passed inspection; now what? Closing is one of the final steps to buying a home. This stage involves signing legal documents with an agreement to pay back the loan from the lender. The papers will stipulate that if you default on your payment, the lender can take the home back.

In some cases, you’ll be expected to set up an escrow account with funds to cover taxes and homeowner’s insurance. The last step of closing is getting the keys to your new home.

8. Buy Homeowners Insurance

Homeowners insurance is essential because it protects your home and belongings from damage or theft and covers liability if someone is injured on your property. Without homeowners insurance, you would have to pay for repairs and rebuilding out of pocket, which could be financially devastating.

While homeowners insurance isn’t required by law, banks typically require it as a condition of your mortgage. If you don’t renew your homeowners insurance, your mortgage company may put force-placed insurance on your home, which is often more expensive than a standard policy. Once your mortgage is paid off, you have 100% equity in your home. Homeowners insurance can be even more important to your financial well-being.

Alabama is Waiting For You!

The benefits of owning your own home in Alabama can outweigh renting on several fronts. As you pay down your mortgage, more of your monthly payment goes toward the balance of the loan rather than interest. This builds equity, which can be an asset in other financial transactions. 

Staying in one neighborhood for several years can help you and your family build relationships in the community. These eight steps to buying a home will help make the process as stress-free and fast as possible.