Home Buying Checklist: 5 Tips for Buying a Home
Ready to make a move? There are a few things you need to know before you do!
Don’t believe what you see on reality TV shows - buying a home is a very involved process. So from your home search to closing day, here are a few tips for buying a home.
Set A Budget
Being pre-approved is one thing but knowing what you can afford is another! When pre-approved for your mortgage, your lender considers your income, debt, and assets to determine your monthly mortgage payment.
However, it’s essential to include all the other expenses you have every other month. How much do you spend on food each month? Child care? All those “fun” activities you love?
Take a look at your last six to twelve months of expenses and set a budget for yourself. Now - how does your mortgage payment fit into that? Is it something you’re comfortable with paying?
If not, it’s time to re-evaluate how much home you can afford. Remember, just because you’re pre-approved for a particular mortgage amount doesn’t mean you have to use it all!
For budgeting tips, you can head over to my Facebook by clicking here.
Start Your Home Search
While you’re scrolling through Zillow, Homes.com, and all those other home search sites, consider what you really want in a home. That means make a list and check it twice!
Consider location during your home search. Do you want to be in the city or the suburb? Or maybe the countryside? Is commute time vital to you, or is being close to your friends and family essential? If location is everything to you, then add that to your list!
Don’t forget what type of home you want and what features it should have. Is a backyard important to you? What about a certain number of bathrooms? But remember, there should be a list of “need to have” and “nice to have.” Consider your “need to have” absolute deal-breakers and your “nice to haves” your take it or leave it wants in a home.
You should also think about if this will be your first home or forever home? If it’s just a starter home for you, it may not have to be perfect. But if it’s your forever home, you want to cross all your “need to have” off your list!
Want more tips? Click here for my blog, “How to Find the Perfect Home.”
Home Insurance vs. Home Warranty
It’s easy to confuse home insurance and a home warranty. Having a home warranty and home insurance is essential. Why? Because you want to make sure you’re protecting your home.
A basic home insurance policy typically covers everything inside and outside the home that may be lost or damaged due to storms, theft, fire, and other disasters. That’s why it’s often also referred to as hazard insurance.
On the other hand, a home warranty provides coverage for repairing or replacing systems and appliances that stop working due to regular wear and tear. Most warranties will include repairs to your HVAC unit or furnace, roof leaks, electrical systems, appliances, and more. And some also offer a rekey service for the new homeowner.
To find out more, you can check out my blog “Homebuying with Guro: Home Insurance vs. Home Warranty” by clicking here.
Closing Costs
Congratulations! You’re at the end of your homebuying journey. But there are just a few things you need to do before you get the keys in hand.
When you make an offer on your home, you should ask the seller for a title policy. Title insurance is a type of insurance policy meant to protect you as the home buyer from any damages or losses caused by a bad title.
The title company will then do a title search to ensure the title is “clean.” This means their no liens or unresolved debts tied to the home's title.
Also, keep in mind other costs that may not be obvious such as policies your lender might require, home appraisal, and more. Specific closing costs depend on your lender and the type of mortgage loan you have.
You can find out more about closing day by clicking here.
Work With a REALTOR® You Trust
What’s the best way to ensure a smooth home buying experience? Work with a great REALTOR®! Working with someone who knows their stuff truly makes all the difference in your home search. So if you hit a roadblock in your home buying process, they’ll work hard for you!
Wondering why you should choose me as your REALTOR®? Because I work hard for my clients, ensuring they get the most bang for their buck. I make sure my clients aren't just updated throughout the process but understand the process too!
