Purchasing a new home is one of the very exciting and potentially frustrating instances of the majority of homeowners’ lives. While most prospective homeowners are anxious to tour houses and locate their dream house, a few important tasks should be achieved before walking through the threshold of a recorded home. Assembling a team of consultants such as a realtor, mortgage agent, house inspector, insurance broker and possibly an attorney will help homeowners prepare for the biggest purchase of their lives.
Mortgage Preapproval
Before shopping for a home, determine how much your budget lets you spend. Consider your credit rating, payment history, amount of down payment and monthly and yearly income and compute just how much you can spend on a mortgage, insurance and property taxes each month, advises Ilyce Glink in the Los Angeles Times. Collect the necessary documents, like W-2s and tax returns, and get several lenders for preapproval and fee estimates. As soon as you select a lender, request a preapproval letter to be presented together with your offer to purchase a house. Many sellers are more inclined to accept an offer with proof of a buyer’s preapproval.
Buyer’s Agent
Ask family and friends for referrals or visit a regional property office to discover a reputable realtor to guide you through the homebuying procedure. Buyers’ agents not only preview and reveal houses, but also represent their clients throughout the entire trade and serve as an advocate and give emotional support through a sometimes complicated procedure. As stated by the California Realtors Association, a property agent conducts local research, analyzes home prices, negotiates with sellers and prepares documents, among other responsibilities performed for house buyers. Buyers’ agents are typically compensated by the sellers once the sale closes, although their fiduciary responsibility remains with the buyers during the procedure.
Home Inspectors and Insurance Agents
A property inspection is a contingency generally requested by buyers and stipulated in the offer to purchase. Home inspections are advised, based on California Realtors, to disclose any structural or other problems that may require action by the sellers before closing. Most real estate brokers will recommend an inspector, but you might choose to locate one which friends or family members have used previously and that is licensed, recommends California attorney Melissa Marsh. After an offer is accepted, the clock begins to tick and the review process occurs quickly. Additionally, have an insurance broker identified who can quickly start the process of initiating an employer’s policy and provide estimates on costs of premiums from several companies.
Identify Preferred Home Characteristics
As soon as you’re preapproved and have constructed most of your staff, prioritize your standards for a house. Decide on neighborhoods that meet your wants and requirements, recommends Ilyce Glink in the Los Angeles Times, and also house elements which are absolute requirements, like a master bedroom on the primary floor. Consider parking, bedrooms, bathrooms, architectural design, neighborhood amenities and sail times as you create a vision of the house you want or need. Carefully weigh which features you’d be prepared to forfeit in favor of cost or location during your hunt.
