7 Essential Things to Do Before You Buy a Home
There are 7 essential things to do before you buy a home. Buying a home is a whirlwind experience. It is easy to get caught up in
the excitement and forget about the practical things you should do
before beginning the home buying process.
If you are looking for a mortgage, has helped many people find a good mortgage.
Nevertheless, these things must be done. The following list will get you started on the most essential tasks.
- Start Saving Money You may have some money set aside already, but you
should continue to save if you think you will be buying a home in the
near future. There are many different costs associated with real estate
purchases. In addition to a down payment, you will need cash for closing
costs, title costs, insurance, an appraisal, and other related fees.
- Get Your Credit Report in Order Your credit score is one of several
things that will determine whether or not you are able to get a
mortgage. Credit ratings also impact the amount you pay in interest and
the size of your monthly payment. Check your credit as soon as possible
and make an effort to clean up your report if necessary.
Pre-approved for a Loan Getting pre-approved for a loan before you begin
looking for a house will help you determine how much house you can buy
and save you from looking at homes that are out of your price range. You
can find a pre-approval will also make it easier to put in a serious
offer when you do find a property you are interested in.
- Determine What You Can Afford Although the mortgage company or bank that
you work with will tell you how much you are preapproved for, it is up
to you to determine how much you can afford. The old rule of
thumb is two and a half times your annual income, but it is really
better to analyze your debts, income, and expenses and decide for
yourself. The last thing you want to do is buy a home that is too
expensive for your budget.
7 Essential Things to Do Before You Buy a Home Continues
- Research Property Values You should always research property values in the neighborhoods that interest you. This will help you determine the fair market value of the house you might purchase. It is also a good idea to contact the local assessor's office to inquire about taxes and home sale prices. Additional information may be available from local appraisers.
- Get Home Insurance Quotes You won't be able to get an accurate insurance quote until you have a specific house to inquire about, but you should be able to get an estimate of how much it may cost to insure a home in a particular area. You may also be able to learn whether or not you will need flood insurance or additional types of insurance you may not have been anticipating.
- Get a Home Inspection Once you have chosen a home, it is always a good idea to get the place inspected by a professional. A home inspector will be able to provide you with a general assessment of the home's value and alert you to any problems that may exist.
Guest post from Bailey Harris, financial writer and contributor.
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