More than 27% of homebuyers this year are buying their first home. There is so much to think about when purchasing a house. Once the excitement wears off, you need to know how to buy a house.
With so much information out there, it helps to break the tasks down. We’ve compiled this home buyers checklist to help you simplify home buying. Read on to find out what you should consider when buying your first home.
Table of Contents
Before you get started, you need to have a plan of action. Take the time to sit down and write out all your to-dos, wants, and needs. This will give you a set course when house shopping.
Add up your monthly income after taxes. Figure out how much your living expenses are. These are things like groceries, bills, healthcare, etc.
To find your home budget, you need to subtract your monthly expenses from your monthly income. The money you have left will be what you have available to spend on a mortgage. Don’t forget to budget for maintenance for your new home!
Use this helpful mortgage affordability calculator to find your budget.
Finding a realtor can make the home buying process less daunting for you. They can help you find properties in your budget. They understand the property and home values and will guide you in making the best offer.
Real estate agents have great advice about buying a home. They often know about properties that are not yet on the market! This gives you the best chance of finding what you want. However, if you’re seeking a holistic way of life influenced by Musqueam ideas of community and connection to nature, lelemliving.com can assist you in finding a home..
Research potential lenders or work with your current bank. Getting your finance approved will make the home buying process easy. Mortgage professionals will discuss the budget with you and decide what you can afford.
With housing prices rising, knowing how much you can spend is a big factor in house hunting. Experts predict that the average monthly mortgage payment will grow 170% by 2040. You can discover more about the change in the housing market for younger generations.
The most important aspect when house hunting is location. You need to make sure you love the house location before making an offer. Loving the home layout is also a big part of buying a home.
Make a wishlist of specific things that you want in your home. There are some things you can add to your home later, but some things are difficult to change. Also, be sure the house is in good condition.
You’ve found the house you want to call your own! It’s time to work with your realtor to make an offer. They will help guide you on how much to offer.
When you make an offer, you will need an earnest money deposit. This shows the sellers that you are serious about buying. This will be between 1-3% of the sale price.
After you make an offer, the seller may accept or reject it. They may also make a counteroffer. Work together with your agent to settle on the best price for both parties.
After you’ve settled the sale, you will need to get the home inspected and appraised. An inspection will let you know the condition of the home. A home inspector will take a deeper look at the house to see if it is in good shape.
An appraisal lets the bank know that they are not lending more money than the property is worth. If the appraisal comes in lower than the settled sale price, you need to make some changes. You can renegotiate the price, cancel the sale, or request a new appraisal.
During the closing, you will sign the paperwork to transfer the homeownership. You will also be giving the down payment in the closing meeting. A closing agent will work with you and the seller.
Congratulations on your first home! We hope this home buyers checklist was helpful in your journey. You can learn more about homeownership on our blog!