Did you know that the average house sold for $390,900 in August 2021? If you are getting ready to make your first largest investment and become a first time home buyer checklist, this guide is for you. We have put together this short guide to share the home buying checklist you do not want to shop without.
Keep reading to learn a few top tips before you choose your fist home.
1. How Much Can You Afford?
The first thing you need to do is figure out how much house you can truly afford. The last thing you want to do is get in over your head and lose your first home. Take into account what your current monthly payments are for your current debt and then subtract that total from the total amount you make every month.
That amount will let you know how much extra money you have left each month. Make sure you do not leave yourself with $0 after all of your bills are paid or else you will not have money if anything breaks down in your home.
Next, you will need to find a lender that gets you pre-approved for a loan. A reputable lender such as PMI buster loan will review your income, credit report, and your expenses and pre-approve your for a loan within a certain amount limit.
In order to receive a pre-approval, you will need good credit, verification of employment, proof of assets, and proof of income.
3. House Hunting Time
Once you find a lender that pre-approves you then you can begin the house-hunting process. Nowadays you can begin your search online thanks to the internet and research the neighborhood the home is in. If there is a neighborhood that you love then we recommend driving around because there might be a “for sale” sign on a home that is not listed online.
You can also find a real estate agent to help you in your search. They sometimes also have access to listings way before they are listed for sale and can let you know if they find something that fits your house criteria.
4. Make an Offer
Before you can close on a home or have it inspected you will need to put in an offer on the property you choose. If you have a real estate agent, listen to their advice on how much your offer should be. The offer letter does not only have to be for the sale of the home you can also request things such as repairs in your offer letter.
Make sure that you are 100% sure that you are serious about buying the home because you run the chance of losing the earnest money deposit that you submit with your letter if you back out for a reason not specified.
Ready to Become a First Time Home Buyer?
We hope that now that you have our first time home buyer checklist, you are feeling better equipped to make informed decisions before signing on any dotted lines.
If this article came in handy please continue browsing this article for more tips and tricks on becoming a homeowner.