Making your Real Estate Experience pleasant to remember.
A Quick and Practical Homebuyer’s Checklist
Pan Florida Realty Inc. ,
Pay down your debt. And while you're at it, check your credit score and look over your credit report. Know where you stand so you can address anything that may negatively impact your interest rate – or even getting a home loan at all.
Fatten up your piggy bank. According to US News, “Most experts suggest that you have at least 20 percent of the house's purchase price saved as a down payment. You can certainly buy a house without that – and many people do – but there are plenty of good reasons to put down at least 20 percent.”
Don't blow large amounts of cash. If you're saving up because you're thinking of buying a house in the not-so distant future, hang onto it. This isn't the time to buy that motorcycle you've always wanted or invest in a coin collection.
Know what you can afford to spend. Fine-tune your budget, and consider not just the mortgage and insurance payments, but long-term month-to-month expenses. Consider the cost to maintain your property. Also, remember to budget for your property taxes!
Consider the type and length of your home loan. Will you take out a fixed-rate mortgage or an adjustable-rate mortgage? A 30-year mortgage or a 15-year loan – or somewhere in between? Research your options and get sound advice to make the best choices for your situation.
Find a good agent. Enlist the help of a reputable real estate agent if it is your first time buying a home. An agent will sit down with you and go over the things you want and don't want in a home, then try to match you with available homes in the area. They have the inside track on what is on the market, can also help you negotiate the contract price, and may be able to assist you in getting the seller to pay for closing costs. Your real estate agent is working for YOUR best interests, and they want to make sure you are getting the best deal.
Get your paperwork in order. All those documents with numbers on them? Yeah, you’ll need those. “Start gathering your federal income tax records for the past couple of years, recent paycheck stubs, canceled checks for rent or utility bill payments and any other paperwork a mortgage lender might want to see, like credit card and student loan information.”
The fun part (according to whom you ask). Scout out where you want to live. Sure, you think you want to live in a certain geographical area, like the North Miami or Westchester. But, you’ll really need to drill down. Pej Barlavi, a real estate broker in New York City, advises, "Many neighborhoods are different and change from one block to another, so the purchaser should be aware of what their money will get in their favorite neighborhood". Also, be sure to assess other factors of the neighborhood, like commute times, school ratings, and crime activity.
Be prepared for closing. You don’t want to take chances with closing on your dream home. Read our recent post “Want a Smooth Closing? Avoid These 6 Things” to mitigate the risk of things going wrong at the last minute.
