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Home Buyer's Checklist

Home Buyer's Checklist

20 June 2022

Buying a home is no small decision, and it is one of the most significant purchases you will ever make in your life. So it is undoubtedly natural to have some queries and experience emotions during this process. You have to do a lot of work, but you don't need to stress as the home buyers checklist has your back.

You can use this checklist for your home buying process. You can find everything here, from collecting your documents to applying for the mortgage and doing the dream property.

Understand what you can afford

Buying a home is one of the most significant financial decisions you would make, so before you start visiting any houses, you need to ensure what you can afford. While buying a new home, most buyers consider getting a loan that requires a lender. The last thing you would ever want is getting your voltage application denied. So before you start house hunting, you should have some idea about your finances. You can use a mortgage Calculator and get some idea about your current expenses. You also need to check your credit score because it is one of the most critical factors in determining the interest rate for your home loan.

Arrange some money for a down payment

Firstly you need to decide whether you would buy the home or not and whether you can afford it. Once you are at some conclusion, you can start determining how much down payment you would need. The down payment sizes are generally dependent on the mortgage type you want. The down costs of the typical mortgages start around 3 to 5% of the buying price of your house. So it's a great idea to put a site some extra money to cover the closing expenses irrespective of the down payment size.

Look for a real estate agent

A real estate agent is your best bet if you are looking forward to buying a house. ; the agents can help you find homes for sale, and they also know the housing market in your locality while providing you unique insight that will help you choose the right home. You can ask your friends and family members for some recommendations while looking for a real estate agent. You can also read some online reviews and ensure that you speak with different options before deciding on an agent that's perfect for you. Additionally, home buyers must not worry about the expenses of the agent.

If required, hire a real estate lawyer

Hiring a real estate lawyer is not always necessary, but some states need a lawyer to represent you. If one is required, then your real estate agent will tell you. You should avoid choosing the cheapest service you are likely to find if your state needs a real estate lawyer. Instead, you can treat this process similar to how you would choose any other agent or lender, like you can get recommendations from your loved ones or read reviews.

Negotiate after making the offer

It's time to make the offer when you have found your dream home. Your real estate agent can help you through the process, and at times they will also take the lead so you can be stress-free. Your offer will likely depend on the asking price, the real estate market, and whether or not there are other offers available. The seller will either decline to accept or counter the purchase offer. The purchase offer will mainly include an earnest money deposit between 1% to 3% of the purchase price. The earnest money will remain in escrow. until the seller accepted the offer

Get the last approval on the mortgage

Once the seller accepts your offer, you need to start the formal mortgage application process. You can expect to provide additional documentation even though you have a pre-approved loan. This is because mortgage lenders mainly want to ensure that you can afford the home loan you are applying for and you would also repay it within the given deadline.

Schedule a home inspection

Once you have reached the agreement with the seller that you want to buy the house, you need to schedule the home inspection and the appraisal part. Dome inspection will ensure that the property is up to date and the foundation is structurally sound. Your home inspector will test some systems, including plumbing and electrical points, and provide you with a detailed report with the home inspection result. Some homebuyers also test for the presence of mold. It is highly recommended even though people do not recommend a home inspection. It will help you avoid some hidden issues that might affect the house value. The appraiser will return mine the property's market value by looking at the home values in that given neighborhood and evaluating the general condition of your house.

Hence, these items are a must for a buyer's checklist.