For a first-time homebuyer, this purchase is probably the most complicated one you will ever make. Most people have heard of home insurance, but the multitude of other considerations such as inspections, offers, and closings can be overwhelming. The good news is that the process is the same for everyone and that you can easily break it down into manageable steps.
Use this first-time homebuyer checklist to guide you.
1. Find a Good Realtor
No matter how successful you have been with do-it-yourself projects, don’t try to become an instant expert in real estate. The learning curve is steep, and it takes years to make connections in the industry. A good realtor will be your interpreter, tour guide, and counselor, all rolled into one.
2. See What You Can Afford
The only way to know your price range is to fill out a mortgage loan application with a bank and see what it offers. You can also apply at credit unions, online lenders, and dedicated mortgage companies. If you receive more than one offer, your realtor can help you read the fine print to get the best deal.
3. Shop for Houses
Prepare a list of qualities that are important to you, such as location, number of stories, size of yard, and anything you consider non-negotiable, such as proximity to a certain school. Your realtor will suggest properties to you, but you can do your own hunting, too. When you find a house that looks promising, schedule a time to look inside.
4. Make an Offer
Once you find a home you like, your realtor will help you decide how much money to offer the seller. The seller will then respond by accepting your offer as-is, rejecting it outright, or proposing a counteroffer for a greater amount. This process repeats until both parties are satisfied. You must give a small deposit at this time, so be certain this is the house you want before making an offer.
5. Appraise and Inspect the Home
Your lender will send a property appraiser to look at the home and estimate its worth. This value will affect your mortgage payments and your Torrington home insurance premium. Next, you will hire an inspector to evaluate the condition of the house’s structure and wiring. If something is amiss, you can ask the seller to fix it before you commit to buying it.
6. Close
The final step is a meeting between you, the realtor, and a closing agent. Expect to sign your name to multiple documents, provide proof of your identity, and make a down payment. Once the meeting is over, you can throw away your first-time homebuyer checklist and create a new checklist for moving day.
About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best and most affordable policies from a variety of providers. Our dedicated facilitators are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.