A checklist to use when buying a home
Ensuring that you buy the right house to suit your family’s needs now and in the future is important. Purchasing a house is a huge financial investment and choosing the wrong one could leave you struggling financially for years to come.
If you are searching for a house to buy, use the following guide to create a checklist to provide to your real estate agent to make narrowing the selection a bit easier.
Determine What You Can Afford to Spend on a House
The first thing you need to do is consider how much money you can afford to spend each month on a home. Take into account the true cost of owning a home—you need to be able to pay for the utilities for the home, the homeowners insurance payment, as well as the mortgage for the house.
Determining how much you can afford to spend on all of these items will reduce the chances of you getting in over your head and drowning in debt from month to month.
Apply for Prequalification for a Home Loan
When you are searching for a house, you want to be sure that you know what the actual budget for the home is. This is to ensure that if you do fall into financial distress along the way, you can still afford to make your mortgage payments each month.
There are many people who determine how much they can afford to pay for a home but are able to get a loan for far less than they can afford.
You can go to a lender and apply for a prequalification loan. This type of loan lets you know if you are approved for a loan, how much you can spend on a house, and how much your interest fees will be for the loan. This allows you to know exactly how much you can expect to pay for the house each month and what your budget is for the house so that you don’t look for houses that are over the amount that you are approved for.