Buying a house?: Here’s a checklist
Buying a house is one of the most exciting stages of a person’s life. Before buying a house, you have to make sure that you are financially and personally ready to take that plunge because buying a house is not child’s play. You have to make sure that you are ready to take that financial responsibility that comes along with buying a house.
The experience can be a bit daunting but don’t stress as we have prepared a checklist that can help the new buyers.
First, you have to determine your budget. Before buying a house, the first thing, in a long list of things, that you must do is plan your budget. This should always be your first step because there is nothing more disappointing than to get emotionally attached to a house that is way above your budget. You have to consider how much you can afford and whether you will be able to compensate for the mortgage responsibilities every month.
After planning your budget, you should get your mortgage pre-approved. To get qualified for a mortgage you have to have a good credit score. The lender will also assess your debt to income ratio. The debt to income ratio is calculated by dividing your monthly debt payment by your gross monthly income. The lender will only approve your mortgage when they are confident in your abilities to pay the borrowed sum.
The next step is to search for your dream home. You can use the internet to search for different houses as it is more convenient than visiting different houses but if visiting/ touring multiple houses is your thing, then you can do that as well. You can also contact a real estate agent who can help you find houses within your budget. They can also act as your personal advocate with whom you can consult various house-related issues. They can also help you negotiate with the seller.
Select the house that you want and then submit an offer. Make sure that you don’t wait long enough to submit an offer. Go for an inspection. Inspecting the house before buying will help you understand and rectify any potential repairing and maintenance issues inside the house.
Sometimes, conducting a survey can also be useful when buying a house. The question is “who organizes a survey when buying a house” Well, the answer is simple. It is often the buyer who organizes a survey. The buyer organizes the survey so that they can decide whether the house is worth the money the seller is asking for. The survey can also help the buyers understand potential issues with buying the house in that neighborhood or whether the seller is asking for too much money.
You have to get an appraisal so that the mortgage company lends you the exact money the house is worth. You can choose to negotiate/renegotiate with the seller before closing the deal.
Seal the deal with the correct paperwork.