Real Estate Matters
By Elisa Jo Eagan
Beginning your house-hunting journey can be exciting, but it may also conjure up feelings of uncertainty. Creating a well-thought-out checklist will help you set realistic expectations both financially and personally, and help make the process go as smoothly as possible. Consider using these tips to add to your own house-hunting checklist:
Obtain a Pre-approval Letter
The first step is obtaining a pre-approval from your mortgage company to determine what you can afford. This helps narrow the playing field as you search for homes in your price range. Note: The pre-approval letter is usually required to make an offer to purchase.
Investigate Loan Options
Being educated on the various mortgage options should be at the top of your house-hunting checklist. Conventional, Federal Housing Authority (FHA) and Department of Veteran Affairs (VA) loans are some of the options that may be available to you.
In addition, be sure to investigate the various types of interest rate programs, such as a fixed-rate 30-year conventional loan, an adjustable-rate mortgage (ARM), or shorter-term loans like 10-year, 15-year, or 20-year, which may provide lower interest rates. All will dictate your monthly principal and interest payments.
Begin With an Internet Search
The internet is a great way to begin your home-buying journey. It allows you to research and familiarize yourself with the areas you may be interested in, helps streamline the process, makes it easier for your agent to understand your needs, and makes your home search more productive.
To help narrow your home search, identify the type of community or neighborhood that matches your desired lifestyle. For example, if you are an empty nester, perhaps you want to downsize to a smaller space and move to a 55+ community that offers a lively social environment, or if you have a young family, your preference may be to purchase in a neighborhood where your children can play and socialize with other children.
Location
Location, Location, Location. For most people, this is the driving factor when deciding where to live. Do you need access to public transportation, or do you need to be near an airport, hospital, or military base for work? Adding this to your house-hunting prep can help you focus on locations that best fit your needs.
Make a Must-Have List
Make a wish list of all the features you want in your home. First, determine what kind of home you want: single-family, townhome, condominium, or perhaps even a new build.
Generally, it’s quite difficult to get everything you desire, so consider breaking it down by categories: must-have (non-negotiable), would-like, and can live without. If, for example, a garage is a must-have, but having a basement is negotiable, you can remain focused on the must-haves, and avoid touring homes that do not meet your criteria, saving you and your agent time.
Prepare a Home Inspection Checklist
When viewing a property, be sure to bring a checklist as you tour the home.
Examine all areas of the house as best as possible including the HVAC system, roof, electrical, and plumbing. It’s your responsibility as the buyer to ask questions and look for anything that may dissuade you from purchasing the home.
You can also request a copy of the survey of the property to be sure no easements or property encroachments exist, and check with the city or town for any plans that could be perceived as negative, both of which may affect the future value of the home.
Keep a List of Homes Visited
It can be a lot to take in when visiting several homes in a short period of time. You can prevent confusion by taking copious notes while touring each home. Be sure to jot down the pros and cons of each, as you may choose to revisit one or more after having seen and compared them to others.
Beauty is Only Skin Deep
Don’t be distracted by homes needing cosmetic updates. As long as the home is structurally sound and the overall bones of the house are satisfactory, the aesthetics can be changed when you become the new owner.
Creating a checklist as you start your house-hunting venture will help you focus on the items that are most important, such as your desired location, must-haves, and price range through pre-approval from your lender.
With hugs, kisses and warm regards.
For real estate information and advice, contact Elisa Jo Eagan, the “Real Estate Godmother,” at 609-703-0432. Learn more at
www.TheRealEstateGodmother.com.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
