Home Buyer Checklist

Buying a home is not something to be taken lightly – or something to be entered into without preparation. Whether you are in the market for a $100,000 home or a $1,000,000 mansion, you need to prepare carefully and make sure everything is ready to go.

The home buying checklist below can help you get started and reduce the chances of an unpleasant surprise down the line. Taking care of these items before you start shopping is an important part of the home buying process.

Set a Monthly Housing Budget

Setting a realistic monthly housing budget is essential, and it should be the first step on your checklist. Financial experts recommend that the total cost of housing, including the mortgage payment, real estate taxes, maintenance and upkeep, should be no more than a third of your gross income.

You can use an online mortgage calculator to estimate the cost of your monthly mortgage payment and use it to determine a price range when you start to shop for a home. Remember it is best to err on the low side and buy less home than you can afford rather than stretch to make the monthly mortgage payment.

Check Your Credit Score

Your credit score will help determine the interest rate you pay on your mortgage, or if you qualify for a mortgage at all. If you do not yet know your credit score, make it the next item on your home buying checklist.

Many credit card issuers now include credit scores on their monthly statements. If yours does not, just contact the credit reporting agencies to get a copy of your most recent score.

Research the Local Neighborhoods

You will probably be shopping in more than one neighborhood, so it is important to research the local area thoroughly. Look at things like school graduation rates, trends in violent and nonviolent crime and home values as you select neighborhoods and make your home shopping list.

You want to buy in an up-and-coming neighborhood and avoid declining areas. The more you know about which neighborhood is which the easier it will be to make a wise decision.

Find a Great Realtor®

Once you have all your ducks in a row and know how much you can afford to spend, it is time to start interviewing local real estate agents. You want an agent who knows the local area and has specific expertise in the type of home you have in mind.

Look for a Realtor® who holds all the required licenses and has attained the necessary accreditations. Once you have selected a great agent, you can get on with choosing the right home for yourself and your family.