Preparing for a home purchase doesn’t have to be an overwhelming process. However, as it is one of the largest purchases you will make, there are things that you want to consider to ensure that you are best prepared. Below are some steps that you will want to take as you get ready.
First steps for a home purchase:
- Save for a down payment – Down payments are typically 10-20% of the purchase price. Depending on the type of loan, they can sometimes be a little less.
- Build good credit – Good credit will best position you for a better rate and easy loan process. Be sure to make timely payments on bills and avoid maxing out credit cards.
- Hire an attorney – Having an attorney on your side to review any and all legal contracts can be well worth the money for your representation.
- Mortgage pre-approval – Seek out a mortgage agent and get pre-qualified for a mortgage. Once you are approved for a certain amount, then you can begin your active search for properties.
- Factor in closing costs – These can include taxes, attorney’s fees, and transfer fees.
- Focus on important factors. Consider things like number of bedrooms, local schools, neighborhood amenities, monthly mortgage expense and public transportation.
- Add in additional expenses. Be sure you are budgeting for utilities, taxes, insurance and/or condo fee when calculating the monthly mortgage payment
Offer to Purchase
- Review the comps, then weigh those against the particular property in consideration.
- Begin with a strategic offer that is going to be competitive and be prepared to counter offer.
- When you offer is accepted, it is a wise idea to retain the services of a licensed home inspector to review the home. They will give you a professional report of the true condition of the home.
- Maintain your files of warranties, closing documents, and all important forms in a well organized place.
- Setup utilities in your name and maintain those files.
- Be sure to weatherproof your home for all seasons.