Owning a beautiful home is a dream for so many of us. A luxury bedroom, spacious living, and aesthetic kitchen; you might have planned every corner of your home. Buying a house is a milestone and the biggest purchase most people will make in their lifetime. There are so many things that need to be done simultaneously when buying a house. Find the right property, gather funds, negotiate and so much more! All of this can turn daunting in no time. Fret not! There are plenty of experts who guide you and help you find the most relevant property.
As it is observed with most of the complicated tasks; the best way to be organized is to create a checklist! It compiles all the must-do’s, breaks down the process into uncomplicated steps and ensures you never miss out on anything. Here we have attempted to bring together 5 things you’ll need to do when you buy a home. Let this serve as your checklist.
1] Get a Financial Check
Without sufficient finances, you just cannot proceed with buying a house. So, first things first; get your finances in order. Buying a house is an expensive affair and you will most likely require a mortgage. Getting a pre-approved mortgage is a very good idea since it will give you a fair idea of what you can afford. The pre-approval takes your preliminary financial accounts into consideration; so, make sure you have steered clear of every bad financial history and have a good credit score. The pre-approval is a statement that claims you’re financially qualified to receive a mortgage and incorporates the maximum loan amount. This will help you determine a budget for your home, which is another crucial step. Once you set a budget, you can shortlist the houses you can take into consideration. It is imperative that you take into account the additional costs that will be incurred; so, you don’t have to face surprises.
2] Find a Realtor
An experienced professional can be your best ally when it comes to finding the right property. You can always choose to go solo; but a real estate agent knows the realty market inside out, they are the first ones to know when any property is out on the listing. A realty or real estate agent can help you determine if the house is worth its claimed price and also prepare you for counter offers. You can get the realtor acquainted with your needs, budget and time constraints and they will find the best alternative available at the moment adhering to your conditions.
3] Finding Your Dream Home
Finding your dream home is no easy task. When you go house hunting, you will mostly be bombarded with many options; some completely aligning with your requirements and some not. Your realtor will be your guide when you are finding your dream home. He/she will not only find a house suitable to your expectations but also help you identify the flaws that are not superficially visible, tell you about the neighborhood and other opportunities. Additionally; they can plan house visits for you. A set budget and the realtor can help you shortlist the most relevant options but it’s you who needs to finalize. See if the house fits not only your current needs but also your future ones. You can also get an inspection done so you don’t have to spend on repair costs.
4] Gather All the Documentation You’ll Need
Next to finances, documents are the most important segment of buying a house. You might be asked for several documents at any stage of home-buying. Therefore; we recommend you start gathering the documents in the initial stages itself. A few documents that you will need will be the last two years’ worth of your tax returns, documentation of income for the last two months, all bank statements, brokerage and investment account statements for the past two years, proof of funds for the down payment and closing, letter of recommendation from the previous landlord if you’ve been a renter and mostly importantly, ID (preferably a driver’s license or passport).
5] Closing on Your New Home
After negotiating, arranging for financing, getting home inspections and meeting all the contingencies, all you need to do is sign mountains of paperwork and receive the keys to your new house. The closing was traditionally done in person, but now it can be done online too. If you have an attorney, you can assign your power to them or get all the documents evaluated by them before signing. Buying a house is a huge commitment; so, it’s likely that you will experience a plethora of emotions like nervousness, anticipation and boredom. But it’s not difficult and goes smoothly.
Now that you have gone through the ultimate checklist; you will know the right questions to ask and realize that your home purchase isn’t as intimidating as it feels. More than five million people buy a new house every year; they have all gone through the seemingly complicated process; and so will you!