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It’s finally happened: you’re ready to settle down and find the perfect home for yourself and/or your family. Before you go out house hunting, however, you want to make sure you have everything in order to make the process as smooth and easy as is possible. After all, this is most likely the biggest purchase you’ll ever make, and a long-term commitment.
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Our house hunting checklist helps you plan for everything, from the finances and people you need on your team, to the items to bring with you when you start your search.
Finances
Down Payment and Closing Costs
Most people know that they’ll need to put a down payment on a house — a portion of the cost of the house due up front. How much you put down affects how much you’ll pay monthly, as a mortgage. Since houses cost in the many hundreds of thousands to millions of dollars, even a 10% down payment can add up to a lot of money. Depending upon your state, county, and the kind of mortgage you qualify for, you may have to come up with, on average, anywhere between 3% and 20% of the total mortgage, according to Investopedia. There are some first time homebuyers’ programs that can help with this, or limit your down payment, so look into those first.
But that’s not all! There are also closing costs, the fees you pay your lender to create the loan for you, according to Rocket Mortgage. These costs average about 3% to 6% of the home price. So if you were to take out a mortgage worth $400,000, closing costs would be anywhere from $12,000 to $24,000.
Home Inspection Fees
If you’re lucky enough to have your offer on a home accepted, you then have to pay for the cost of a home inspection, and a variety of other inspections or tests depending upon risk factors. The national average for a home inspection is $340, though it can be a little less or more, according to Home Advisor. Other possible inspections, according to Rocket Homes, could include termite inspection, asbestos, mold, or lead testing, a foundation inspection, septic tank inspection, sewer scope or radon testing. Each of these tests can run from $100 up to $1,000 depending on who you hire.
Have Before You Go
Realtor
There’s one professional you don’t want to try to purchase a home without — a real estate agent. It’s their job to do a number of important things most people don’t …….
Source: https://www.gobankingrates.com/investing/real-estate/house-hunting-checklist-looking-for-new-home/