Home Buying Checklist
Buying a home is always going to be exciting. You finally get to have a place you can call on your own. As much as it is a great feeling, there will be challenges that make you question your decisions. It is crucial that you’re prepared so that you can know how to overcome such challenges. We’ve come up with a checklist to always have with you if you intend to buy a home.
Check Credit Score
It is important that you’re checking your credit score before you decide to buy a house. A bad credit score will only make things hard on your end. You’re likely to be denied financing. Even if you do, you’ll be paying high-interest rates. One of the ways you can ensure that you have an excellent credit score is by clearing debt if you intend to buy a home.
Know How Much You Can Afford
You can go out shopping when you don’t know how much you have in your pocket. The same applies when you intend to buy a home. The first thing you’ll need to determine is how much you can set aside for the purchase of the home. When you have a budget, you’ll be aware of the options available that fit your price range. You don’t want to go out shopping only to find out that you can’t afford the house. If you will be buying the home through a mortgage, you’d want to know if you can afford it. This will mean getting preapproved before going house hunting. Once you’ve been approved, you’ll know the type of house that you can afford.
Save For Down Payment
Even if you’ll be financing the purchase with a mortgage, you’ll be required to pay for the down payment. The down payment is usually set at 20%. Lenders will require that you’re paying the amount as a sign of commitment so that you’re not walking away when the monthly repayments become a challenge. There are some lenders that can offer single-digit figures for the down payment but you should be wary of such providers as they’re known for predatory tactics. Make sure you have enough saved up for down payments. You’ll also need to worry about the closing costs which are usually set at 4% of the value of the property.
Get a Reputable Real Estate Agent
The real estate agent that you choose can help a great deal in getting your dream home. You need to get someone that you can trust and has your best interests at heart. You’ll be relying on the agent to learn about everything the market has to offer. An agent will help with identifying the flaws of a home so that you’re not making the wrong decision with the purchase. The Best Real Estate Agents in Australia are the ones that put the customers first in everything they do.
Choosing a Lender
You should never settle on the first lender you come across. It is crucial that you’re reaching out to mortgage lenders so that you can compare the prices and what is being offered before you can make a decision. Not all lenders will have your interests at heart. The majority of them will be interested in the money. You can ask friends or family for recommendations if you’re not sure of where to start. You can also ask your real estate for suggestions as they’re likely to know of a mortgage lender that you can trust.
Finding the Market Home
Getting the perfect home is when it ticks all the boxes. There are some key features that you’d obviously like your dream home to have. There are some situations that you’ll have to compromise because it might be possible to get everything you desire, especially when the budget is not flexible.
Getting Preapproved
Even before the loan goes through, it is important to get preapproved. This gives you the confidence to go out there to search for houses. Your offers are likely to be taken more seriously when they see you have a preapproval letter.
Conclusion
There is no denying that buying a home for the first time is going to be an exhilarating experience. Don’t make erratic decisions because of the magnitude of the purchase. Make sure that you’re working with a real estate agent who will be the voice of reason at all times. The process should be enjoyed and not endured provided you’re not rushing or making decisions out of emotions.