Finances

Home buying checklist: what to consider before purchasing a new home

In this guide, you’ll find a checklist with everything you must know before starting your home buying journey! Read on for more!

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Get your home-buying process started today!

happy-couple-receiving-keys-their-new-home-from-realtor
Home buying checklist! Source: Freepik

Buying a new home is exciting, but it’s important to remember to consider everything. This home buying checklist will ensure you don’t forget anything!

Home salesman stretches holding black pen.

How to get preapproved for a mortgage

Wondering how to get preapproved for a mortgage? Then keep reading and learn how! We have the 4 best tips to help you with your journey.

When buying a home, there is a lot in the game. If it’s your first time or not, this checklist It will help make you make a smarter decision!

Get your dream home with these 9 simple steps

Homeownership is a journey started by several Americans yearly. For most of them, it is an overwhelming walk through many challenges.

If you’re getting started on your own and don’t know where to start, don’t worry! We know that everyone can feel lost at first.

So, this is a guide to help you find yourself and make your homeownership adventure smoother! Let’s check the main steps to get there!

Establish how much you can pay

Every dream must start at some place, especially the financial ones! Homebuying isn’t different and starts on how much you can pay.

You will certainly have to conciliate your home dream with your budget.

Remember, buying a home is a big financial commitment, and things can change over the years!

Be sure your aspirations are aligned with the lifestyle you can secure. Serenity is priceless!

Furthermore, don’t be discouraged! There’ll always be a home you can afford until you can earn more to achieve your bigger dreams!

Be sure about your finances

The lawyer is consulting clients about the house purchase contra
Be sure about your finances! Source: Freepik

When a mortgage comes, a good credit score can be crucial to get a better deal!

Check your budget to ensure it’s solid enough to receive an increase in monthly costs.

Also, many lenders make soft credit score checks and offer mortgage calculators.

It will help you keep your ambitions at the same size you can afford. This is the best way to enjoy your dream without becoming a financial nightmare.

Preparing yourself to deal with your finances, among other things, will ensure you can move on to the next step the smoothest way!

Start saving for a down payment

In most cases, taking a mortgage will require you to pay a considerable amount, even before the installments. It comes in the form of a down payment.

A down payment is normally how lenders ensure your home investment.

It is paid upfront when you close your loan and is based on the total value of the property.

In most cases, you must be prepared to deal with fees, taxes, and closing costs. Be prepared to deal with some extra cash for this.

Now is the time to get your financial goals in order. Make sure you do your best to sort out your finances and maximize your earnings.

Chose a lender and submit a preapproval

Choosing the right lender is a financial decision. Different companies will offer conditions of payment and also different loan types.

See the one that fits your needs, considering things beyond fees, closing costs, and interest rates.

In this stage, the better your credit score more options you’ll have.

Normally the period for getting pre-approved is close to 30 days.

So you can take advantage of this time to choose your future new home with the help of your real estate agent.

Home purchase. Mini paper house figurine in supermarket troley on blue background.

5 things to do before applying for a mortgage

Here are some things you should know if you consider applying for a mortgage. This informative article will guide you through buying your dream home!

Find the perfect home for you

Now is the time to find your dream home, so you must be focused on some aspects. A real estate agent will make your life easier.

Consider things like location, size, and the value you prepared yourself to afford. Your next property must fit your intended new life.

Find a home that fits your needs! Maybe you want a backyard, and a single-family home will be right.

Perhaps dealing with a lot of maintenance isn’t for you, so a townhouse or a condo will be perfect.

Your lifestyle must also be in the balance of your search. Choose a neighborhood with schools, coffee shops, green areas that will affect your life and prices!

Make an offer

So you spent some time but finally found the house of your dreams. Now it’s time to make a smart offer to get the best deal!

At this step, relying on a real estate agent will make all the difference! This professional will help you make a deal and negotiate with the sellers.

It is very common receiving a counteroffer after giving one. So you can evaluate it.

If it fits your needs, it’ll be time to make your cash offer or work toward closing your mortgage.

Get a home inspection and appraisal

Cheerful man working on laptop while resting at cafe
Get a home inspection and appraisal. Source: Freepik

Scheduling a home inspection will give you a guarantee of making a good deal. It’s the best way to ensure the integrity of the property before buying it.

The home inspector will tour the home, searching for possible problems on the property.

They’ll be listed, and you can ask the sellers to fix the problems or get a discount to fix them yourself.

On the other hand, the home appraisal is for the lender’s interest. They will choose the appraisal, and you will pay for it.

This will ensure the lender that the house is in line with the loan amount. When approved, you can follow the normal borrowing process.

Negotiate for the best prices

After you make the home inspection, there is a chance that some minor problems will appear at the house. But don’t worry! It’s very common.

It’s actually an opportunity to make a new offer to the seller based on the eventual repair costs.

If a discount on the purchase isn’t possible, you can ask the seller to pay for them.

Close your sale

You went through all the processes and negotiations, and the home passed the inspection and lender appraisal. Get ready to deal with a lot of paperwork!

Now you’re closer than ever to getting your home! This time, you want to ensure that your finances suit the lender’s requirements.

You will also have to present documents such as ID, proof of insurance, pay stubs, and more to the lender.

Also, get ready to have a net amount equal to the downpayment!

Get ready to sign the papers, and you will finally be able to enjoy the comfort of your dream new home!

Bottom line

Buying a new home is exciting, but it’s important to remember to consider everything.

Choosing a lender with great offers and conditions is game-changing!

Meet Real Genius Mortgage! A lender who operates nationwide and has several mortgage options.

Prequalify online and start a homeownership journey today! Check it out on our following post!

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Real Genius Mortgage review

Genius Mortgage will help you achieve homeownership fast! Enjoy a user-friendly mobile app to help you with your process! Read on!

About the author  /  Luis Felipe Regueira

I needed to learn about finances when I was in culinary school and wanted to save money to start my own business. So I haven't stopped because I believe studying and writing about the topic can help more people achieve their goals. Currently, I write about finances and run a small coffee shop.

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