Tuesday May 23, 2017

Home Buying Checklist

Many individuals are not totally successful when buying a house they truly prefer or within budget because they seek out housing without a list.

In order to successfully conduct your search for a new or first-time home you will need to realize that buying a property is truly a process.

It is the biggest financial investment most persons will make during their lifetime so a “buying a house checklist” is definitely needed.  The following article provides you with just that:  a “buying a house checklist” that will keep you on track.

The first area that needs to be addressed with respect to your “buying a house checklist” is how much you can afford.  The amount you are able to afford will be dependent on your overall income, current monthly expenses or debt; the down payment you can provide; and rate of interest you pay on the amount borrowed.

If your debt to income ratio is a nightmare then there are debt counselors available that will be able to put together a plan to get your debt under control allowing you to save for a more substantial down payment.

Secondly, it never hurts to know your rights.  It is a good idea to go on-line and review the following:

  1. Fair Housing laws;
  2. The Real Estate Settlement Procedures Act also known by the acronym RESPA;
  3. Your rights as a borrower; and,
  4. Predatory lending practices.

Third now that you know the law and basically the amount you can afford, the next item on your “buying a house checklist” is to look for a loan.  You’ll need to communicate respectively with a good many lenders to attain the best terms.

Make a comparison of interest rates, relative fees and amounts various brokers are able to lend.  During this process you may consider attaining pre-approval for the home loan—certainly a good idea if you are truly serious. During the process educate yourself with respect to various home buying programs.

The most prevalent loan program for the first time buyer and most home purchasers is the FHA loan.  The FHA loan is considered a good selection since it offers a reasonable down payment. The fourth item on your “buying a house checklist” will be shopping for the home.

In order to shop for the home you desire you will need to do all of the following:

  1. Select a realtor;
  2. Put together a list of home features;
  3. Look at houses that meet with your budget and in areas you prefer;
  4. Review houses that are structurally sound however need to be upgraded;
  5. Look at mobile homes as an option if those type of dwellings interest you; and
  6. Consider the aspect of building a new home over upgrading an older-style structure.

Additionally, if you are looking at homes with home owners associations make certain you review fees and what is covered by the home owners association cost(s).

The fifth item on your “buying a house checklist” is to make an offer if you are interested in an existing structure and have determined not to build.  Naturally you will want to discuss how to initiate an offer with your real estate professional.

Also think about what you will do if the person selling the home makes a counteroffer:  there may be some negotiation involved (in other words) before an agreement can be reached—so be prepared.

The sixth area you will want to address on your “buying a house checklist” is assuring the house you are considering receives an inspection.  The offer should be made with the stipulation included: “based on the outcome of the home inspection.”

The home inspection will provide you with details such as what repairs need to be made to the house and can save you from buying a home that is not to your financial advantage (to purchase).

The seventh task on your “buying a house checklist” is to comparison shop for homeowner’s insurance.  Once you find the right insurer you can inform the lender since they will require you to have it.

Eighth and the final items on your “buying a house checklist is to sign on the dotted line for the property you intend on purchasing.  Just make certain you read everything thoroughly and hire a real estate attorney if you believe the contract is just too confusing.



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