Hello World! Welcome Friends! Owning a home is a dream everyone cherishes. But whenever we think about buying a home, usually we get too engrossed with the type of curtains, lighting, tiles, flooring, and others that we forget the vital essentials.
There’s plenty to look forward to making the biggest purchase of your life. This real estate transaction requires expertise in financial as well as legal matters. Not only that, but it also requires your bird’s eye and ground-level view of a multitude of mundane issues.
Many first-time buyers often succumb to the stress associated with the intricacies of home buying and decide to keep renting. Not anymore! This blog will provide you with a step-wise guide to making your big purchase a hassle-free experience.
Let’s get started!
Pre-Buying Checklist- Things to Do
The best way to organize even a complicated task is by breaking it down into smaller tasks. And since with home buying, you might have to learn new legal terms, such as contingency or escrow, meet mortgage lenders or real estate brokers, you need to know what lies ahead. That way, you can easily navigate through complexities like a pro.
So, here we have shared some of the “must-do” tasks to help you get through the pre-buying checklist seamlessly.
Revisit Your Financial Plan/ Budget
Unless you’ve won a lottery, you’ll require the help of a mortgage lender to help you with the finances to buy your home. Needless to say that no one in the entire country will hand you such a massive amount of money.
So, what do you need to qualify for the mortgage? Having a steady job or income is definitely the primary prerequisite to get a loan. The other thing that lenders consider is your credit score. Experts suggest having a credit score of around 620 to get a loan and 580 for an FHA loan. But it varies remarkably depending on the lender. So, make sure you settle your accounts before heading for the biggest purchase of your lifetime.
Additionally, you need to see the amount of cash available to cover your down payment or closing costs. It varies. So, you must keep a check on that to see if you are ready for purchase now or do you need to wait for some time.
Once you’re ready, the next thing you need to do is:
Opt For Mortgage Pre Approval
You have set your budget. Down payment is ready. What next? Before going house hunting, you need to talk to the lender to understand all the types of loans you qualify for. That way, you can browse through different options and determine the best rate for yourself.
Although it won’t guarantee you, it will help you decide whether you are financially qualified based on the initial examination. Also, you’ll find the maximum amount that you can loan from a lender. So, you must check how to choose a mortgage lender to avoid any tempting offers that might not be as lucrative as they seem.
Talk to a Real Estate Agent
Since the internet is ubiquitous, everyone is opting to search for their dream home online. You can narrow down your choices by checking through the neighborhood, talking to local people about the place you wish to live in. For instance, if you are interested in buying a home in Raleigh, you can search for houses nearby and make an informed decision.
Having said that, one can’t deny the importance of a real estate agent, especially when you are buying a home for the first time. They are your best ally that will help you navigate through the entire process hassle-free. They can pull some critical information and see whether the house is worth it.
So, if you happen to find the place that’s right for you, the next step is to:
Visit in Person and Negotiate
You’ve found “the place.” Congrats! But did you know that it’s not only about emotional connection? You need to check all the features and amenities mentioned in person.
So, everything is clear now!
Start with the negotiation process. If there is no bidding war, you can go for specific conditions when offering a price. Honestly, this is the most frustrating part where you need to go back and forth between negotiations until it’s finally accepted.
When You go Under Contract- Things to Do
The seller accepted your final offer. Hooray!
But what next! Don’t worry! We’ll walk you through all the possible scenarios when you go under contract. And after an offer is accepted on a house, you need to follow some steps to make sure that you are making the right purchase decision. After all, you’ll spend your life savings on it. You need to be absolutely sure about your decision.
Talk to a Home Appraiser
You might be thinking you already made an offer, then why get your home appraised, right? Well! A buyer’s asking price is one thing. You must have an idea of the actual value of the property.
This is where a real-estate appraiser will help you with. He/she will conduct an on-site inspection and will provide you with all the information. For instance, the appraiser will evaluate current market trends, comparable properties nearby and then assess the fair price of the property.
Get Your Home Inspected
Once you are satisfied with the offer, get the home inspected to determine any possible repairs or issues before making the final purchase.
You must check the attic, roof, foundation, HVAC, windows and doors, plumbing and electrical systems, walls, ceilings, and floors. You can also go for checking pest infestation and other necessities to avoid hefty repairs later on.
Earnest Money Deposit
Experts also call it a “good faith deposit.” This is usually the amount that a buyer needs to put down once the seller accepts the final offer. This ensures that the buyer is serious about the purchase. It can vary between 1 to 5 percent of the sale price. The escrow company or the realtor usually holds it.
Home Insurance
This step is an essential part when buying a home. Although it’s not necessary, it helps you get your home financed easily. It enables lenders to protect their investment since the homeowner receives the money to rebuild their home if there are any damages due to natural causes or burglary.
Ideally, it would help if you go for insurance that typically covers your house, your stuff, or legal liabilities. But make sure to compare different types of insurances. Only then make your final call.
Set a Closing Date
Since you are not paying the amount by cash, it would be a good idea to choose a convenient date for you, the seller, and the lender. Usually, people set the closing date between 30-45 days after the buyer accepts the offer.
But, hold on!
There is a catch here. You’ll have to pay closing costs as well. Don’t worry! You won’t have to spend much money. It’s usually 3 to 4% of the home’s price. Once you clear all the dues, such as inspection fees, property taxes, and others, you’ll exchange the keys.
Congratulations! Your dream home is officially yours. But what next?
Post-Buying Checklist- Things to Do
Since you finally completed most things with ease, let’s help you finally settle in your new home comfortably. So, what is that you must do now?
Keep reading, and you’ll find out!
Transfer Utilities to Your New Address
No one wants to live in a house without internet, electricity, gas, water, cable, or phone. Right? It’s a basic necessity to lead a comfortable life. So, you need to schedule all the appointments before you move in to avoid any hassles later on.
Also, keep in mind that you’ll need to schedule trash and recycle pickup as well.
Deep Clean Your Home
You might be thinking, “why do I need this?” The last homeowners already took care of it. But if you don’t want to spend your first days cleaning everything, it’s an excellent choice to hire a cleaning company that will do the task for you within your budget.
Make sure to pay close attention to your kitchen and bathrooms. Also, ensure that they check gutters, backyard, vents, and chimneys to rule out any dirt or build-up.
Do The Necessary Changes And Hire Movers
Once everything is in pristine condition, ensure to change locks and reset your garage door security. Additionally, change your address, and forward your mail to your new address. When you complete these formalities, hire reliable movers to pack your belongings and help you move to your new home.
In the End- You Finally Did It
Home buying is a time-consuming process. With so many intricacies involved, it might seem like an uphill task. But not anymore! This home buying checklist will help you navigate through the majority of the processes quickly and conveniently.
Now that you finally feel a sense of relief, the next thing you need to do is introduce yourself to your neighbors. Please get to know them. And live the life you always dreamed of in your new home.
Best of luck!
Click the links below for any posts you have missed:
Different Types of Wardrobe for your Bedroom
The Top Bedroom Trends of 2021
How to Protect Your Home When On Holiday
Common Door Problems that Arise to Due to Changing Temperature
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Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
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