Checklist for First Time Home Buyers
Step 1: Figure Out How Much You Can Afford
Sit down and calculate your monthly income to debt ratio.
Figure out how much you can comfortably afford to spend each month on your mortgage, property taxes and insurance.
Add up all your other expenses and an estimated number for the new household costs.
The money that is left over will let you know what you can and cannot afford.There are many different mortgage calculators on the web to assist you in this process.
Step 2: Run Your Credit
Check your credit report and FICO score.
Step 3: Get Pre-Approved for a Mortgage
Figure out what type of mortgage is right for you while shopping around to find the best mortgage lender and interest rates.
Step 4: Your Wants & Needs
Determine what you want in a house and compare it to what you actually need. The best place to start is narrowing it down to location, type of home (single family, condo, etc.), price range, size and style.
Step 5: Find a Real Estate Agent
Your realtor will help you find your home and negotiate the best deal on your behalf. Sometimes they have access to homes not available to the public.
Step 6: Search for Homes Yourself Online
Looking around online at what is on the market will give you a better sense of what you like and do not like.
Step 7: Find Your Home and Research
Once you find the home you want to buy, do not forget to do your research. Your real estate agent should send you comparable homes sold in the same area to give you the best idea of what to offer for the home. Once you figure out the number, make an offer!
Step 8: Finish the Deal
Have the house appraised
Schedule a home inspection.
Use the appraisal and inspection reports to re-negotiate if necessary.
Choose a homeowner’s insurance company.
Complete the loan process with the lender.
Do a walk-through inspection prior to closing.
Step 9: Closing Day!
Your realtor will walk you through the final process on closing day
Have all necessary documents and a cashiers check for the amount you need to bring including closing costs and your down payment. Sign your life away and then the house is yours!
