It doesn’t matter if it is your first home or your last. Buying a house can be a stressful experience. There’s always the chance that something will go wrong before you actually take possession of your house. Here are seven simple ways to make the house buying process easier.
1. Order your paperwork
Before you start searching for properties online, get your documents in order. You’ll need to provide your most recent tax returns from the past two years, your current pay stubs and bank statements for three months. If you are applying for a mortgage, you will also require copies of your lease, your cancelled rent checks or your most recent bank statement. If you are in a divorce or bankruptcy situation, your divorce decree may be required. If you are considering a 401k, trust or other savings account to fund a down payment or purchase outright, you should know that it can take longer than expected.
2. Find an agent that you can trust
It’s important to know the current market conditions before you begin the application process for a mortgage or loan. Listen to the opinions of at least three agents about how much you can expect to receive for your house. Speak to them about the price you will likely pay for a new home.
After hearing the same price ranges from three different agents (assuming they all agree, which is a good assumption), pick the agent who has the best sales record in your area. Also, choose the agent you most like. You’ll be working with your agent quite a bit if you want to stage your home, keep it show-ready and listen to the feedback of people who have viewed your house.
3. Research banks, credit unions and loan officers
It may seem easier to go with a credit union or bank that offers one-stop home shopping. However, the real meaning of this term is that the bank has an interest in the sale, through business agreements it has made with realtors and attorneys and even possible home inspectors. The bank could also receive a share of the commissions. This is not a way to ensure objectivity. Ask for the ID number of a loan officer and check NMLS Consumer Access. Check the credentials of a mortgage broker with the Better Business Bureau if you are using one.
4. Order your finances
Pre-approval is important once you have chosen your bank, mortgage broker or loan officer. You will receive a letter of pre-approval. It will help you determine what you can afford to buy before you begin looking. It also shows realtors and sellers that you are serious. Depending on how long your search takes, you may need to renew your pre-approval–they’re usually only valid for 60 to 90 days.
5. You can find a reliable home inspector by searching online
A good home inspector can warn you if you are looking at an older house about areas that may have problems such as termites, seepage of water, or poor construction. Do your due diligence. Talking to someone you have worked with in the past is a great way to find an inspector. They should be someone who takes pride and cares about their work. Find a home inspection company that will let you go along with them to the inspection. This way, you can ask any questions you may have.
6. Consider title insurance
It may seem unnecessary, but it’s important to check that there aren’t any liens on the property you plan to buy. It’s the last thing you want to discover that your new home is actually owned by someone else. The average cost is between $1,000 and $3000, or about.05 percent. If the seller has gone through this process, you can get a title insurance policy that is reissued. This can save you money. Ask your real estate agent if the seller’s Realtor is aware of this. Some banks require title insurance for mortgages, so make sure you ask your lending officer.
7. Line up your tradesmen
You may already have a trusted plumber, electrician, roofer, flooring specialist, or general carpenter. You’ll need to rely on online and in-person recommendations if you are moving to a different city or if you are a first time homebuyer.
Independent home suppliers are a great place to look for good tradespeople. They’ll know who is sloppy, and will often have the business cards of tradespeople on hand. We hope these seven tips will make the house-buying process a bit less stressful. Enjoy your house hunting!