Buying your first home is both exciting and scary at the same time. The emotional upheaval that goes with the process can cause the inexperienced to make an expensive mistake. Buying a home will likely be your biggest financial purchase and will affect your financial prospects for years to come.
A home buying process checklist is a smart idea. It’s a practical method designed to help you make the right decisions at the right time. When it comes to making big decisions you should always get good advice, so you can check that off your list by reading this article.
Financial Checklist
Since this will be your biggest purchase you will need to get your finances in order. Use the following to work out your budget.
Calculate Debt to Income Ratio
You can work this out by adding up all your monthly outgoings such as rent, utilities, food bills, car payments, and so forth. Then divide this number by your income. If your ratio is high then you need to work on either increasing your income or reducing your monthly outgoings.
Get a Credit Check
Your credit score is going to affect your ability to get a mortgage. Even if you think you have a good credit score you should get a check to make sure there are no errors or surprises.
Decide on Your Deposit
You need to have a realistic figure in mind as to how much you can afford as a down payment on your new home. With this in mind, you may want to use a mortgage calculator to work out how far your deposit will go.
Get Pre-Approved Mortage
This is a very important step in the process. Once you’re successful at this stage then you’re in a good position to start house hunting in earnest. Plus you will have a clear idea of your budget and financial limitations.
New House Checklist
Getting your financial ducks in a row is a vital process but that won’t guarantee you get the right house. Here are some points to keep in mind so that you can make a smart decision about which property to buy.
Choose a Good Real Estate Agent
This is easier said than done. Don’t rush into using the first one you come across. Do your research and make sure they have a first-rate reputation for helping their clients get what they’re looking for.
Buying a house with the help of the right people will make the process so much easier. You want a realtor that listens more than they talk.
Make a Home Requirements Checklist
This should be all your needs and some wants for your home. Ask yourself lots of questions about your ideal home and form a list accordingly.
Make a Neighborhood Checklist
Follow the process above but this time focus on the area in which you would like to live. What are the amenities that you want and would make an ideal area?
Closing Checklist
Here are some points to keep in mind when you’ve found the house you want to buy.
Make a Good Offer
Don’t risk losing your ideal home. Make a fair offer and be ready to follow through as soon as they confirm.
Get a House Inspection
Don’t accept what you see at face value. Get a professional house inspection so that you can be confident of what you’re buying.
Get Insurance
You’ll need to buy insurance for your new home so start thinking about that early on. It’s most likely your mortgage provider will require proof of this as well.
Use a Home Buying Process Checklist
In this article, you’ve read about using a home buying process checklist. As you can see, there are many considerations. Having a checklist like this will give you a sense of control and order during a stressful time.
Feel free to adjust and modify this list however you see fit. The important thing is that you keep this list nearby and stick to it.
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