Checklist for Buying a New Home
Make a checklist. This is the first and most important thing you should do when you are about to buy a new home. Why? Buying a new home is complicated. There are lots of things that you need to do which you may not have done before. There are things that you need to remember that you may forget if you did not take notes. And there are procedures that you need to follow which need to be exact, thus you have to have a checklist.
So if you have not done it yet, better adapt the following:
1. Self-Assessment (Getting Started) –
• Do I have enough funds to finance a big purchase?
• Do I have a permanent source of income to pay my future financial obligations which include the mortgage and the interest?
• Do I have a good credit rating to get a good home loan?
• Do I maintain a good record in paying my bills?
• Do I have enough money to pay for the down payment?
• Can I control my monthly expenses?
• Can I sacrifice other things so that I can pay for the mortgage?
If you answer “yes” to all these questions, then you are ready to buy a home.
2. Setting the Budget (Know how much you can afford.)
Develop your budget doing the following:
• Gather all your monthly bills.
• Compute your total debt.
• Record your monthly expenses (food, clothing, leisure, utilities, car maintenance, etc.)
• Take note of your monthly income.
• Compute your savings using these data.
The amount you derived here will tell you the type of home you can afford.
3. The Perfect Home (Know what home do you want.)
There are several factors that come into play when you are choosing your home, but basically your personal preference for a home is on the top of the list.
Here are the things you should take into consideration when you are buying a home:
• Location – Is it near your work, school, and important establishments? Is it perfect to your preference?
• Neighborhood – If you like the neighborhood, then your neighbors like it too. That’s why the chose to live there, right? The point is, you often have the same preference with your neighbors which can create good harmony although it does not always assure of that.
• Space and Design – What type of home do you want (condominium unit, apartment, and subdivision unit)? How many rooms do you need? What are your ideal floor and lot areas? What type of home construction do I want? Other factors that influence your preference for a home are the color of the paint, kitchen space, bathroom tiles, fixtures, lighting, flooring, doors, windows, exterior and interior walls, landscape, and cabinets.
4. Making a deal (Negotiate)
• Talk to several real estate agents that will help you find a home that matches your home preference.
• Find the best home loan that can offer you the best rate.
• Find developers and builders that can offer the type of home you need.
• Select one that is best for you.
• Find a homeowner insurance that fits your need.
Make sure that you negotiate your terms to achieve what you want.
5. Choose a home and close the deal
• Work on the approval requirements.
• Know your rights as a buyer.
• Arrange a home inspector.
• Read everything in the contract.
Checklist keeps track of your progress. Carry it from start to finish so that you know where you are.