If there is one quality that trumps all others in new home buying, it’s being prepared. The key to preparation is organization. You can stay organized and track your progress in preparing by creating a home buying checklist. Follow these tips when creating a home buying checklist.
Make a List of Needs and Wants: An important part of the home buying process is separating your home needs from your home wants. This will help future decisions. Making a list of certain home features and amenities will help streamline your home buying process. Distinguishing your home needs from wants can also help if access to funding becomes an issue during your process. Needs will be the bare minimum compared to the wants, which may cost more.
Check Your Credit Score: Unless you are buying your home outright in cash, a big part of the home buying process is going to be the amount you are able to borrow from a home mortgage. Part of the mortgage application process will be based on your credit score. It is said that you should check your credit three months prior to buying a home. For more information on how credit impacts home buying, read my previous post.
Figure out Your Down Payment: Try to calculate the amount you are going to be able to put down on your home. The more you put down, usually the more affordable your mortgage payments will be. Without a large down payment, you may be required to take out mortgage insurance.
Research Mortgages and Possibly try Pre-approval: If you are light on cash assets, a mortgage will most likely aid you in your goal of buying a home. Getting pre-approved for a home loan could give you a ball park on how much you can spend on a new home.
Research Communities: Once you have an idea of your price range, you can start looking at communities that have homes in that range. You can look at the schools and businesses that you may frequent in the future.
Get a Real Estate Agent: Getting a real estate agent will help you find the home you desire. You will be able to give them the range of price you are looking for, the amount you are able to put as a down payment and go over your list of needs and wants. This will help them in finding you the homes you not only desire, but can also afford.
Go House Hunting: Browsing homes with your real estate agent will start putting concrete ideas of homes in your head. Once you get an idea for the home and neighborhood, you can do more research into the home’s history and learn more about the community.
Once you find the home you are looking for, you can make an offer. Remember to manage your expectations. Certain neighborhoods are more competitive, and you it is possible to be outbid. Remember to have a list of back up homes in case of this event.
If you are looking to buy or sell a new home in the Encinitas California area, I’d be happy to be a part of your home buying experience. Give me a call or send an email to discuss your requirements for a new home. I look forward to speaking with you.