Home Buying checklist

1. Determine Your Budget

Before you start searching for a home, it’s important to figure out what you can afford. This will depend on your income, debts, credit score, and down payment. Here’s how to get started:

• Assess Your Financial Health: Review your credit score, monthly expenses, and overall financial situation

• Get Pre-Approved for a Mortgage: A pre-approval letter from a lender will give you a clearer idea of how much you can borrow, and it will show sellers that you’re a serious buyer

• Consider Additional Costs: Don’t forget about property taxes, insurance, and potential home maintenance costs when calculating your budget

2. Choose the Right Mortgage

Understanding your mortgage options is crucial. Work with a lender to explore different types of loans that might be suitable for your situation:

• Conventional Loan: A standard mortgage for buyers with good credit

• FHA Loan: A government-backed loan with a lower down payment requirement, ideal for first-time buyers

• VA Loan: A loan option for military veterans and their families, often with no down payment required

• USDA Loan: A loan program for rural buyers with low to moderate income

3. List Your Priorities and Must-Haves

What are you looking for in your new home? Create a list of features that are non-negotiable versus those that are “nice to have.” Consider these aspects:

• Location: Proximity to work, schools, or family

• Size: How many bedrooms and bathrooms do you need? Do you require a home office or extra space for hobbies?

• Style: Do you prefer a modern or traditional home? Are you open to fixer-uppers?

• Amenities: Consider factors like a backyard, garage, or pool

4. Start Your Home Search

Now that you know what you can afford and what you’re looking for, it’s time to start your home search. Consider these tips:

• Use Online Listings: Websites like Zillow, Realtor.com, and Redfin will give you access to detailed listings

• Work with a Real Estate Agent: A local real estate agent can provide insider knowledge of the market and help you find homes that fit your criteria

• Attend Open Houses: Visiting homes in person can give you a better sense of the neighborhood and the property itself

5. Make a Shortlist and Schedule Viewings

Narrow down your list to a few homes that meet your criteria. Take note of their pros and cons, and schedule showings to see them in person. During each viewing, pay attention to:

• Condition of the Home: Check for any signs of wear and tear or needed repairs

• Neighborhood: Is the area quiet and safe? Are there amenities like parks, grocery stores, or schools nearby?

• Layout and Flow: Does the space suit your needs? Is there enough storage? How does the layout feel when you’re inside?

6. Make an Offer

Once you find a home you love, it’s time to make an offer. Here’s how to go about it:

• Work with Your Agent: Your agent will help you craft a competitive offer based on comparable sales in the area, market conditions, and the asking price

• Include Contingencies: A contingency is a clause that allows you to back out of the deal if certain conditions aren’t met, such as issues found during the inspection or problems with financing

• Negotiate Terms: Don’t hesitate to negotiate price, repairs, or closing costs to reach an agreement that works for you

7. Schedule a Home Inspection

A home inspection is a critical step to ensure there are no hidden issues with the property. A licensed inspector will check for:

• Structural Problems: Look for issues with the foundation, roof, or walls

• Plumbing and Electrical: Make sure everything is in working order

• Pests and Mold: Inspect for signs of infestations or mold damage

If the inspection reveals problems, you may need to negotiate with the seller for repairs or a reduction in price

8. Get a Home Appraisal

Your lender will typically require an appraisal to determine the home’s market value. If the appraisal comes in lower than the agreed-upon purchase price, you may need to renegotiate with the seller or come up with the difference in cash

9. Review Closing Costs

Before you finalize the deal, make sure you understand all the closing costs associated with the transaction. These can include:

• Loan Origination Fees

• Title Insurance

• Appraisal and Inspection Fees

• Attorney Fees (if applicable)

• Property Taxes and Insurance

Your lender will provide a Closing Disclosure that outlines these costs, so review it carefully

10. Close the Deal

At closing, you’ll sign the necessary paperwork, pay any remaining costs, and transfer ownership of the property. Be sure to:

• Review the Closing Disclosure Again: Make sure everything is accurate and as expected

• Bring Necessary Documents: Bring your ID, proof of insurance, and any remaining down payment funds

• Sign the Paperwork: You’ll sign the deed, loan documents, and other final paperwork. Once everything is completed, the property is officially yours!

11. Move Into Your New Home

Congratulations! After closing, the house is yours, and it’s time to move in. Here are a few things to consider:

• Set Up Utilities: Make sure all essential utilities like water, gas, electricity, and internet are set up before your move-in date

• Change Locks and Update Security: For peace of mind, change the locks and make sure the home is secure

• Enjoy Your New Home: Finally, take time to enjoy your new space and make it your own