Practical Buyer's Checklist: Make Your Home Buying Process Easier from the Start!
Whether you’re a first-time homebuyer or an experienced homeowner, purchasing a new home can always be stressful. But don’t worry! We have prepared a practical checklist of six things you can do from the start to make the process much easier. Before you start packing, here’s what you need to do.
- Prepare a Budget and Discover How to Save a Lot of Money! You need a clear picture of your family’s finances even before thinking about calling a real estate agent or applying for a mortgage. List all your fixed monthly expenses, such as car payments, current rent or mortgage, utilities, tuition fees, and loan repayments. Add categories for other expenses like food and entertainment. This way, you’ll be able to determine how much you can save for your new home.
- Manage Your Debts Smartly and Achieve Financial Freedom Faster! If you have credit card debts, student loans, or other debts that require regular monthly payments, write them down so you know exactly how much you owe. Determine your debt-to-income ratio. There are many online calculators that can do this for you. You need to know two ratios. Your housing debt expenses (including taxes and insurance) as a percentage of your gross monthly income should be around 25 to 28%. Your debt-to-income ratio (credit cards and other consumer debts) should be around 10 to 15%. Make sure to keep these ratios in mind to stay financially healthy when buying your dream home.
- Make a List and Fulfill All Your Desires Without Compromising Your Needs! Before starting to work with a real estate agent, you need to make a two-column list of needs versus wants. Make sure you know the difference! You need three bedrooms. You want a pool. You need to be very upfront with your real estate agent about what exactly constitutes a deal-breaker for you in the buying process. If more than one person is involved in making the final decision, make sure everyone is more or less in agreement on needs and wants. If one spouse wants a short commute and the other has visions of a countryside property, you may have a problem. Resolve these issues beforehand to avoid complications later on.
- Find a Real Estate Agent and Get Expert Support for Your House Hunting! Once you’ve done your homework, it’s time to start looking. You want to find a real estate agent who represents you and puts your interests first. The best way to find a real estate agent is by asking for recommendations from friends and family. However, if you’re new to the area and don’t know anyone, you may need to visit multiple firms and interview several real estate agents. Chemistry is important. You need to look for someone who is committed to meeting your needs and who knows the area and price range you’re looking for. By working with a trusted real estate agent, you’ll save time and money by avoiding common mistakes.
- Ask the Right Questions and Make Informed Decisions! When speaking to potential real estate agents, don’t be afraid to ask probing questions. And expect to get honest and direct answers. Here are some to get you started:
- How long have you been in the real estate business?
- Do you represent both buyers and sellers?
- How many buyers are you currently working with? How many sellers?
- How many homes did you sell last year?
- How familiar are you with the neighborhoods we’re considering?
By asking these questions, you’ll be able to make informed decisions and choose the best real estate agent to accompany you in your house hunting.
Buying a home may well be the most important decision you make, both financially and emotionally. But don’t worry, with our practical checklist and these tips, you can prepare thoughtfully for the buying process. Let us help make this experience fun and rewarding. Contact us today to start your journey to your new home!
