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Before you buy a home, READ THIS! This is everything you must do before putting that ten percent down.
We all know buying a home is all about location! But what else do you need to know?
Buying a home is a big decision, so the home of your dreams must meet your expectations. Before you sign anything, you must cover all your bases. Here are the five essential things to do before buying your home.
1. Understand the Local Real Estate Market
Never shop blind! Before you begin your new home search, make sure you understand the local real estate market.
Work with a realtor or do homework on your own! Be aware of home prices, local demand for homes, and what type of homes are up for sale.
This is the first important step in the home buying process! This will give you an idea of what you can get for your money when you speak with your chosen realtor.
2. Gather Necessary Documentation
It is always best to be prepared. Between financial information for loans and the new home contracts, you need a lot of important documentation.
You will need tax returns, pay stubs, bank statements, proof of funds, identification, and more. If you are getting a loan, you may need excess paperwork, but this is good enough to start.
3. Get Pre-Approval
Start speaking to lenders before you are in the home buying process. Speak to lenders about the types of mortgages that you can qualify for. Get a feel for interest rates and specific requirements from different lenders.
After you find a mortgage lender you are comfortable with, you can get pre-approval. Pre-approval is a statement from the mortgage lender that you qualify for a loan. Pre-approval makes the process of buying a home much easier. In fact, some realtors will not accept clients without the statement.
4. Know the Options for Your Down Payment
Of course, you must know how much you can afford when you buy a new home! Know the price you can afford for the upfront cash for the new home.
The mortgage lender of your choice offers a variety of mortgages, all with different down payment requirements. Your mortgage lender will also assist you in understanding state and city down payment assistance programs.
5. Conduct a Building and Pest Inspection
Hire a company you trust to conduct a building and pest inspection. Never buy a home without a pest inspection and never sign a contract without a stipulation on passing a home inspection. (Make sure to hire the best pest control exterminators in your area.)
The inspection ensures your potential home is structurally sound and free of plumbing or electrical issues. The inspection will also ensure your home is free of mold or pests!
These are the Important Steps in Buying a Home!
In addition to these five important steps, make sure your home is appraised and worth the price! Buying a home is a difficult process, so make sure these steps are taken.
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