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The Latest Checklist for Buying a New Home

In one’s life, there are rarely any huge substantial investments except for buying a new home. This is a step that you have got to take at some point in your life, sooner or later. The process of buying a new home isn’t just overwhelming, but it can get quite confusing and filled with regrets if you make the wrong choice. 

You can’t assign the task to someone else because you’ll probably be living in that house for many years to come. Some people try to get their thoughts together along with their budget to come up with the best plan that could allow them to secure their new home. To help you create a checklist for buying a new home, we’ve created the best checklist that will come in handy.

Improving your Credit Score

You can obtain loans with almost any credit score out there, but that doesn’t always make it a good idea. Having a bad credit score when you’re applying for a loan can actually hurt you more than you think. You’ll want to focus on improving your credit score before you apply to a lender because they will determine the interest rate of your mortgage based on your FICO score. It’s much better to do this as early as possible to maximize the chances of getting a loan with the lowest interest possible.

Find if Something Needs Fixing

You should try walking around the house and checking the exterior more than once to ensure that there are no critical problems that require immediate fixing. You should then look for damp walls or cracks in the walls, in addition to loose roof tiles and broken guttering. If you are looking to install floors over tile floors, you also need to make sure that the condition of the tiles you plan on installing over is good enough. Tiles in poor condition may need to be completely removed, and some uneven tiles may require priming and new coating.

The seller or real estate agent won’t probably feel the need to tell you all about the house’s problems, making it your duty to ensure that you are buying something you truly want. There are a lot of cover-ups that sellers or house owners do to cover up hidden cracks, damp walls, or issues with furniture. You may want to smell the walls and see if there is a musty smell over the walls, even if the walls themselves look great. Dampness is best found out by using your sense of smell if there is a new paint job over the walls.

Deciding on Budget

The last thing you want is to rush the budgeting plan that you have to make for buying a house. While you can obtain some mortgage options for more than 40% of your pre-tax income, it’s not really a good idea. You may end up paying the majority of your income in a 30-year mortgage deal, which is a pretty bad financial decision. Make sure to take into account the budget you have for living comfortably and try not to compromise it when you’re in the market for a loan.

Collecting Documents

Whenever you apply for a loan for buying a house, you need to make sure that you’ve got all the required documentation with you to avoid losing time and opportunities. The lender will always ask you for these documents, but it’s always better to make sure you’ve got them ahead of time to make the approval of your loan quicker.

Income-related documents like your previous 2-year tax return, W-2, 1099, and latest pay stubs.

Identification documents like social security, driver’s license, or others.

Financial documents like bank account statement, retirement account, proof of funds, and similar documents.

Take your Time Viewing the House

One of the biggest mistakes you can do when you’re buying a house is not to make sure that you completely understand and know what you’re buying. The money you will invest in your house should be met with due diligence when it comes to checking the house out. You should take at least 20 to 30 minutes to view the whole place from crevice to crevice, so you could know what you’re getting into. Spending a considerable amount of time viewing the house can actually get you to bargain for a lower price than the asking price.

Buying your very first house can easily become overwhelming; you’ll be looking for financing options, houses in many places, warning signs to look out for, and many other important things. Making a checklist is the best way to ensure that you’re not getting a bad deal, whether on the mortgage or the interior/exterior of the house.

 

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