Are you worried the housing market is going to crash? Are you in the market for a new house? In these times of inflation and economic uncertainty, it could be a good time to sell up.
But what do you need to know when it comes to buying a house? How do you make sure you don’t get ripped off when you purchase a house?
Here’s everything you need to know about a house buyers checklist.
Table of Contents
What is a House Buyers Checklist?
It’s an in-depth list of needs and wants in a home buying process that will help every homebuyer find the perfect house. Keep in mind, that a needs vs. wants checklist is just one aspect of an overall homebuying plan.
Managing expectations and creating a needs vs. wants list will make for a more productive home shopping experience.
A good house hunting checklist includes items that can mean the difference between getting the house you are looking for or missing out because another buyer was better prepared.
As you plan, here are 4 things to include on your homebuying checklist.
1. Understanding the Home Buying Process
You need to first understand the home buying process and all the documents required. If you fail to understand this then you can make some rookie errors that can affect you later down the line.
There are several steps that you can incorporate into your home buying process that can help you make sure that you are getting a home and mortgage that is a good fit.
Unless you are working part-time as a real estate agent or a mortgage broker, you are probably feeling a little bit confused by all of the homebuying jargon being thrown at you.
Not Just About The Price
A house is the biggest purchase most people will make in most people’s lives – and simply trying to figure out the home buying process can feel overwhelming. Buying a single-family house is a massive investment, and it is always about much more than just the price you pay.
Most people cannot purchase homes with no money down, so you are probably going to get a mortgage to fund the purchase. Unless you can put together a fully-cash offer for your house, you are going to need some financing for a mortgage.
A pre-approval letter shows sellers and real estate agents you are a serious buyer, and it can give you a critical advantage over competing homebuyers.
Once you have a mortgage then you can begin the process of signing contracts, selling your current house, and setting a date to move in.
2. Finding a Good Realtor
You can’t sell your house on your own. You need a good realtor to help you move forward with the process.
You want a realtor that understands your needs but also one that isn’t too expensive and within your budget. Realtors that are too cheap might overlook crucial aspects of the contract.
Relators that overcharge might not give you value for money. Be sure to question what it is they are offering for this price.
3. Choosing Your Mortgage
You next need to choose a mortgage that is right for you. To determine this you need to figure out what your estimated income is likely to be over the next few years and decades.
If you want to pay off your mortgage pretty quickly then you could choose a mortgage of 10 years but remember that your monthly payments will be more. You could choose to pay it back over a longer period such as 20 years but then you’ll be tied into monthly payments for that period.
Remember inflation is high at the moment, which could bode well for the value of your house in the long term. But it’s also an indication of a dire economic situation to come which could lead to a housing crash.
Furthermore, to correct the economic downtown the government and the Federal Reserve could well raise interest payments. This would have a big impact on your mortgage payments.
Do consider this site for other options for real estate loans.
Besides mortgages, it also includes cannabis real estate loans for commercial property.
4. Down Payment
Agreeing upon a down payment is critical for your checklist, as this may determine the value of your new home when buying a house.
To receive the best rates for housing, you will have to put down at least 20% of your income for the house. A lender will only give you an amount you can afford to pay each month towards the mortgage.
When you purchase a house, you will have to cover dozens of details regarding your new home. This includes potential issues with foundation, structure, appliances, fixtures, electrical, plumbing, and more. If your down payment is too expensive it could stifle your ability to carry out these tasks on the home due to lack of funds.
5. Checking the House
You need to check the house yourself to make sure it is in good condition. You don’t want to purchase the house and then realize further down the line it isn’t worth the price you paid for it due to faults.
A realtor can help you arrange this but you also need to carry out your own checks.
House Buyers Checklist Is Important
You need to make sure that your new house is everything you asked for. Failure to do this can lead to you paying more than the house is worth, having to fork out for repairs, or getting a mortgage that isn’t in your best interests. This is where a house buyers checklist comes in handy.
For more house buying tips be sure to check out the rest of our site.