Checklist for Buying a Home

Checklist for Buying a Home

Buying houses or homes is not as simple as buying other gadgets found in them. The home buying process or real estate, in general, can be technical when terms like inspection, mortgages or loans come up. Most times you may need a guide to ensure you do not make the same silly mistakes most people make over and over when buying a house. So if you have found your dream home, here are some tips to help you create a checklist that will make sure you do not make financial mistakes or even overpay for your new home.

  1.  Learn all you can about available mortgages

Conducting this research is the first step to make sure that you successfully purchase a house. It gives you an idea of how much down payment you will need to make. Once you get started, you will discover that there are several mortgages available for you to take advantage of. However, very few mortgage plans avail you the opportunity to make low down payments. Typical examples are FHA and Conventional loans. If you are a former or current military personnel, VA loans do not require you to make any down payment at all.

  1. Have a good Budget

Now that you have identified the various types of mortgages available, next is to consider your budget before you choose a mortgage plan. This will ensure that you do not settle for a mortgage plan that will swallow up all your income after-tax every month. Careful budget planning will help you decide what you should spend on your house or dream home.

  1. Determine where your down payment and finishing cost will come from

With Mortgage plans and budget creation out of the way, you need to have a plan for where your down payment will come from. Depending on the mortgage you choose, you may be required to pay all or part of the down payment from gifts. Mortgage operators are very strict about how much money you have reserved.This will serve as an indication of your ability to cover the mortgage in the long run. As a result, your closing cost should be a small chunk of the house’s initial price (say 3%).

  1. Get appropriate documents

To avoid having problems when applying for a mortgage, you need to gather relevant documents well ahead of time. These documents should include the items in the list below, although your lender may ask for more.

– Account statements to serve as a representation of your financial condition.

– IDs and other credit information.

– Employment and income details.

  1. Make Your Offer

Assuming you have made the choice of the home you want to buy and your mortgage is settled, then you can proceed to make an offer. Technically, you shouldn’t be doing this by yourself; a real estate agent should be in the right position to make offers for your new home on your behalf. If you can afford one, go ahead a hire one! But if you cannot afford one, you can still make a meaningful offer by yourself if the right variables are put into consideration. For example, based on current market valuations, is the house over-priced? Does the home meet current standards to warrant the offer you want to make? How old is the house and how long has it been on the market? And much more. All is pretty much done after this process. Just wait for the closing day and get everything ready to move into your dream home.

 

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