The Only Home Buying Checklist You’ll Need
Did you know that most people find the house-buying process quite stressful? Buying a house is one of the largest investments you’ll pursue in your life.
To help streamline the house buying search, prepare a checklist. If you would like some home buying tips, keep reading.
In this guide, you’ll learn how to buy a house that suits your unique situation. Understand the importance of a budget, compare loans, and choose the right location.
Ready to learn more? Keep reading for a home buying checklist.
Home Owner Responsibilities
Before you buy a home, you should think carefully about if you’re ready to take on this huge responsibility.
Are you financially and emotionally prepared to hold a mortgage? When you own a house, you will have to deal with major repairs or issues.
Renting is a lot different than owning a home. When you work with a landlord, you can call them up when your dishwasher or dryer breaks.
Make sure you’re ready to handle these different home maintenance tasks. When buying a home, prepare to spend a couple of thousand dollars on repairs or updates a year.
You might not have anything broken down each year. But it’s helpful to take on small house repair projects each year to maintain the value of your house.
Will You Buy a House With Someone Else?
Next, think about who you will buy the home with and how you manage finances. Do you both have the same mindset regarding finances?
Will one of you need to relocate for work at some point? Are you hoping to start a family in a few years? These are questions to think about before moving forward with this part of your journey.
What’s Your Budget?
Ensure your finances are in decent shape. You can use a house affordability calculator to figure out a reasonable amount to spend. Consider your current debt load, salary, and down payment amount.
Some people will try to put a sizeable down payment for their home so they won’t pay as much interest.
After talking to your mortgage broker or lender, you might end up with a large budget. Yet, you don’t necessarily have to spend a super high amount.
Think about how much money you would like to commit to a mortgage.
Maintain Your Credit Score
Next, you’ll want to consider how your credit score plays into your mortgage. A high credit score can help you get a mortgage with a low-interest rate.
Do you have poor credit at the moment? Consider working on repaying different debts first before getting home. Pay bills on time, and get rid of any debt on your credit card.
How Will You Pay for Your Down Payment?
After you understand what you can afford, determine your down payment amount. 20 percent down payments are beneficial because you’ll spend less on your mortgage.
Yet, some people can’t afford a large down payment. Sometimes, you could even get financial help if you’re a first-time home buyer. Start researching first-time home buyer programs today.
What’s Your Wish List?
Before shopping for a home, come up with a need and wants list. Some people might be looking for a starter home, while others require a large house. Do you need more space?
Will you get an attached unit or a detached house? People who want a traditional house or backyard should look at buying a newer house. You could live out in the country or in suburbia.
Some people will consider getting a townhouse or a condo so they don’t have to deal with much maintenance.
Where Do You Want to Live?
Are you going to move to a city or head to the country? Do you have children who will need to attend a local school? Consider researching the communities before shopping around.
Buying a Fixer-Upper Versus a Turnkey Property?
As a home shopper, consider if you’d like a turnkey property. You can move in without doing tons of repairs. Think about if you’d like to do a complete renovation and turn it into the house of your dreams.
Choosing between a turnkey property or a fixer-upper will depend on your long-term goals. You can usually get a good deal on a fixer-upper. Learn more about bank foreclosures for sale.
What Mortgage Will Work for You?
The kind of mortgage you choose will affect your qualifications for a loan.
It usually includes the down payment amount and how much you’ll need to pay in the future. Picking the right home loan will improve your chances of approval. It could save you thousands.
A conventional loan is a loan that the federal government doesn’t guarantee. The traditional loan offers a small down payment. Expect to deal with more strict qualifications.
A Federal Housing Administration loan is a mortgage backed by the FHA. An FHA loan will be much easier to qualify for, but you’ll have a strict requirement regarding mortgage insurance.
Don’t Forget to Use This Home Buying Checklist
Did you find this guide helpful in buying a home? Keep a home buying checklist with you when beginning your search.
Think about your budget, needs wants, and the kind of mortgage you’ll pursue. Make sure you don’t overspend on a home. If you need to find the right mortgage, look into talking to a financial advisor.
Need more helpful advice? Check out more about real estate and housing options on the blog today.
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