Buying a home is an exciting process in which you need to prepare financially and also with the appropriate time investments to seek out the right home to fit your needs. Here are some recommendations to help you find a great home to purchase this spring.
Plan For Upfront Costs
When you go into the home purchase process, you will need to plan for the financial end with applying for the loan and preparing for upfront costs. There will be a majority of the costs that you will pay when you meet for the property closing and settlement, but some fees may be due a bit sooner than this and you will need to pay them when you make an offer to purchase a home with a purchase contract.
Plan to have some earnest money to put as a deposit with your offer. This money shows your interest and intention to purchase the home and will be held in an escrow account until you close on the home. The earnest money deposit is at risk of forfeiture if you break the contract and will be paid to the seller. Also, plan for the fee to pay for a home inspection within a few weeks of submitting an offer to purchase the home. You may need to pay the home inspector when they complete the inspection, otherwise, it can be paid out of the home purchase costs.
Additionally, you should plan to have money at closing to cover the closing costs for the purchase, which covers the loan origination costs, title fees, and other settlement costs. Then, look at how much you want to pay as a down payment on your home. This should be based on how much you have saved up and what requirements of your mortgage loan.
Look at Plenty of Homes
Just as you prepare for the financial side of your home purchase, also be ready to tackle the home market with the right search plan. The better you sort through online listings and the more homes you look at, the more success you will have in finding your dream home.
Work with your real estate agent to set up a search area or areas in the city, and set a home purchase maximum based on your loan pre-qualification amount and down payment. Establish search criteria, such as the number of bedrooms and bathrooms, the presence of a garage or a carport, the size of the property, the type of home style, and its age. This will filter through the listings that are available in your area and you can customize the plan in which you will visit each home to make a more defined determination on purchasing the home.
Keep these tips in mind when looking at homes for sale near you.