Are you buying a home for the first time? Have you been struggling to find a checklist that will help with all of your decisions?
We have created a home shopping checklist that explains everything from what type of property to buy, how much it should cost, and everything else in between.
This is not just a guide for buying your first home. This is also a list of things you need to do before closing on any property.
Determine How Much Home You Can Afford
This is the simplest step of buying a home. just ensure your mortgage payment does not exceed 28% of your monthly income before taxes and debts are paid.
In other words, if the total cost of housing averages 30% or more for most prospective homeowners in that market, then you will have difficulty being approved for financing to purchase a property.
You may also want to consider how much will be leftover at the end of each month after paying all related costs such as utilities, real estate taxes, and homeowner’s insurance premiums.
As long as there is enough money left over so that you could pay rent elsewhere should it become necessary to move back into an apartment or rental unit this would work fine too.
Save Money for a Down Payment
You can’t buy a home without money however, you will need to save up about 20% of the total cost.
This is often referred to as your down payment and it shows the lender that you are serious enough about buying a house for them to lend you their hard-earned cash.
You should also be prepared for closing costs which include things like appraisals, inspections, and other fees usually associated with obtaining financing from a bank or lending institution.
These typically run around $500-800 but may vary depending on where your property purchase takes place.
Select a Real Estate Agent You Can Trust
You don’t need to hire a real estate agent however it is highly recommended.
These professionals will help you find the right home and negotiate on your behalf in order to get you the best possible deal when buying property.
Real estate agents are often paid by commission so they do not want to convince you that you can afford something more than what your budget allows otherwise, they won’t be getting their much-needed paycheck at the end of each month!
Get Pre-Approved for a Mortage
This is just another term for getting pre-qualified to buy a home, according to RMG Real Estate Network.
When you are approved for financing, this means that the lending institution has undertaken an analysis of your financial situation and determined whether or not they will lend money to purchase property in your desired price range.
It’s important to note here however, there is no guarantee that you will be approved after submitting all necessary documentation so only apply if you know it’s something you can afford.
Put This Home Shopping Checklist into Effect
This home shopping checklist explains everything you need to do before buying and closing on a home. To learn more about this subject, continue reading this blog for more helpful articles.