The 9 Point Checklist for Buying a House
When buying a house, there is no way to get through the buying process without hitting a few problems. Buyers may face financial issues, they could have trouble finding a good neighborhood, or there could be no homes for sale. The many problems buyers face makes the process difficult but rewarding when it is all said in done.
For a smooth process when buying a house, a buyer must follow this nine-point checklist.
The Mortgage
Before house shopping can start, a lender has to be found. It is important to interview lenders to see what they offer in terms of interest rates and what loans they have. Not all lenders are able to provide all mortgage.
Getting Ready to Apply
A lender is a great place to start to learn more about the state of a person’s finances. They will have a set goal for their credit score and tell them exactly what is troubling in their credit history. This is an opportunity for the buyer to review their credit and start working to improve it.
Pre-Approved
No buyer should make an offer on a house without a pre-approval letter. This letter is obtained by going to the lender of choice and providing them with financial information and documents. This is the first step in getting the mortgage.
The lender will review the information and approve the buyer for a certain amount. This letter shows sellers that the buyer is able to get a loan for the amount that they are offering when buying a house.
Must-Have
Choosing a house is no easy task. When going through the steps of buying a house, buyers need to create a list of what must be in the home for the sale to work. These are non-negotiable items.
This list should include anything about the neighborhood or driving distance, as well. Knowing exactly that cannot be compromised on is important in finding the perfect house.
Look at Home
Looking at homes is one of the best parts of buying a house. It can be a fun process if the buyer does not grow too frustrated because they do not find what they are looking for. Always take notes or pictures while walking through a house to review later. It can be helpful when trying to decide between two properties.
Drawing Up an Offer
When drafting a home offer, details matter. It is important to make sure all contingencies are in place, the earnest money is documented, and what is being used as a down payment is stated.
Getting the Mortgage
Even though the buyer has been pre-approved they must now go back to the bank and get the mortgage finalized. This will complete the process to apply for the loan and the date of closing will be decided. At this time closing costs will be discussed.
Inspections
Buying a house without an inspection can be a costly mistake. There is a certain amount of time a buyer will have to order the inspection. So long as everything comes back okay, the buyer can give the go-ahead to complete the sale. If anything is seriously wrong with the property they may ask for a credit or ask the sellers to fix the problem.
Closing Day
Finally, it’s closing day. After all the stress of inspections and trying to get a mortgage it is time to sign the paperwork. This is the day that all documents will be signed and the new owner will take possession of the home. Typically, an attorney will be present to walk the buyer and seller through the process.
Buying a house is not an overnight process. It can take time. But if buyers do not take the correct steps at the correct time, it could cause an even longer delay. This is why buyers need to do their homework up front.