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10 Point Checklist For House Hunters

Friday, April 10, 2020

If you’ve only just started your home buying steps, then chances are you are already feeling overwhelmed with mortgages, inspections, and budgets. House hunting can seem a little intimidating at times, however, if you make sure you have an idea of what to expect, it doesn’t have to be. 

Photo by Sarah Trummer from Pexels

Whether you’re buying a plot of land, searching for a condo in sukhumvit, buying your first home or upgrading to a family home, having a guide that you can refer to through each step of the process can definitely help. 

From the first thought about buying a home right through to closing the deal, have a look below at a handy 10 point checklist for any house hunter: 

Check Your Credit Rating 

It’s important for you to look after and monitor your credit score and strengthen it if you need to. If you have a poor credit score it is likely that you will pay a lot more back because chances are you will pay a higher interest rate. This can result in a lot extra, especially when you think about the length of a mortgage. This means that before you even start looking at buying a house you need to check your credit score and make changes if you need to. There are plenty of ways to now do this online for free. Even a small increase in your score can make a massive difference in the long-run, so have a look at doing some major damage control if you have let things get out of hand. 

Think About Your Budget 

You need to decide on a reasonable budget for your house search, it can be possible to obtain a mortgage that eats into almost half of your monthly income, but it doesn’t mean that you have to spend this. You should do some research about how much you can afford, how much is real and how much you are going to be able to afford in the future. Try not to think about your income automatically increase as you never know what is going to happen in the future. You need to plan for the worst and not skint yourself out instead of preempting an increase. 

Research Mortgages 

There are a variety of different mortgages available on the market, conventional loans are among the most common and require you have a down payment. Because there are so many options, it’s best for you to do your research into each type and think about which is going to suit your needs best. If you struggle alone, it’s a good idea to have a meeting with a mortgage broker who will be able to work with you to find you the best deal. Just remember that it is important to shop around before settling. 

Figure Out Where Your Down Payment Will Come From 

Once you know which mortgage is going to be best for you, you need to think about your down payment. Some mortgages will allow small down payments, for them to come from a gift but others can be quite restrictive. Ultimately most mortgage providers will want to know that you have enough money to cover a few months payments and be able to pay part of your house cost upfront. You may already have savings, be thinking about a loan or received a gift that you are going utilise but if you haven’t now is the time to start making plans. 

Your Documentation

You need to gather all your important documentation, your lender is going to ask you for a lot of it. Gathering this ahead of time will show that you are prepared and stop you from feeling stressed and under pressure to produce what is needed on time. Some of the things you may need include, identification verification, employment verification, proof of a gift and proof of your financial condition. 

Preapproval 

Having a preapproval is basically the same as applying for your mortgage, you just don’t have a specific house in mind. You will have your credit checked, verify your employment status and your income along with other documentation such as those seen above. A preapproval is where you receive a commitment to lend you money and it gives the appearance of a much more serious buyer. Not only this, but it can also give you the power to move the sale process along a lot quicker, essentially getting you in your home quicker. 

Think About A Realtor

Ok, so this is definitely an optional step, you are able to buy a home without the help of a realtor, however, there are some good reasons why you should be using one. Your realtor will do all of your research for you, cut down on time-consuming parts of the house buying process and stop your house search turning into a time-eating task. On top of that, a good realtor will have excellent knowledge of the current market, the local areas and will be able to guide you smoothly through the whole house buying process.

Look At Potential Houses

This is definitely the fun part! House shopping can be stressful at times but this is really when you can start visioning and picturing yourself in your potential new homes, so have fun with it. Once you’ve narrowed down the areas you want to search, make a list of all the things you would like your house to have and what you need it to have. Don’t stress on cosmetic issues, as these can be easily fixed, instead think about things like proximity to good schools, the size of your home, and how many bathrooms you need. 

Make Your Offer 

When it comes to the time you are ready to make an offer, it’s important for you to be seen as a serious buyer as well as ensuring you are getting the best price possible. This is something that a good realtor will be able to help you with and there are a few variables that will have an effect on the price you should offer. Think about things like is it overpriced? Is there work that needs to be done? And, how long has it been on the market? These are all bartering tools that you should use. 

Inspection 

Once you have found the house that you want and put in an offer it’s essential for you to get a house inspection. The last thing you want to do is skip this step, as you could find yourself in for a few nasty surprises when you move into your home. Any buyer should be happy for you to arrange a home inspection if the property isn’t up to standard you have the right to walk away from the sale. 

This ten-point checklist for house hunters should keep you on track when buying your next home, do you have anything else that should be included? Please share them in the comments below.

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