Checklist To Buying A Home

communication,seth jacobs,maine mortgage,southern maine realtor,craig candageIn honor of the Southern Maine Spring Market and all the new buyers, I thought it would be helpful to review a standard checklist on what to expect when purchasing a home in Maine. Depending on the location and type of property will determine the finer details of purchase.  For this article, I will present a general checklist for buying a single family home:

  1. Begin by understanding your finances – you will need to know what you can afford to pay monthly as well as determining how much money you will need for a down payment.  Prepare a monthly budget to put everything into perspective.  This budget should include EVERY expense each month.
  2. Choose your Realtor – you want to choose a Southern Maine Realtor you trust.  The cost to a buyer for their service is “FREE” and they will represent you and your best interest throughout the transaction.  In many cases, your Realtor can refer you to a mortgage broker as well as other vendors throughout the entire transaction, this becomes your “Team of Professionals” that will help you along the way to successfully purchase a home you feel comfortable with.  The Realtor acts as the “conductor” of the entire process from beginning to end just like in an orchestra.
  3. Get Pre-approved before you start looking for a home – understanding what you can afford before you step into a property will make the process more smooth and straightforward.
  4. Look for a home – after meeting with your Realtor, you now should have determined what your want, how much your willing to spend and where you want to look. Start house hunting!
  5. Make an offer – working closely with your Realtor, they will help you understand what the best strategy is to offer on the property based the most recent sales in the area.
  6. Under Contract – this is the most exciting moment for the buyer! Your Realtor will guide you through the all the timeframes that are important within your contract.
  7. Inspection of home – by now, you are anxiously wondering what condition the home you are about to purchase is REALLY in.  Your Realtor should be able to have a preferred vendor list ranging from home inspectors to air/water testing and everything in between when it comes time to inspect the home.
  8. Obtain Homeowners Insurance – it is best to get a few quotes from various companies to get the most affordable and best coverage for your new home. Your Realtor should have referrals for you.
  9. Pack and Move – If you plan to use a moving company, secure this early on in the process so you know how much you are going to pack and how much the company will pack and set the date.  The rates vary depending on how much you pack yourself.
  10. Final Walk Through – either 24 hours or an hour before the day of closing, walk through the home to make sure it is in the same condition it was when you last viewed it and all the repairs have been completed to your satisfaction, if applicable.
  11. Closing – Once the title company receives your loan documents, you will receive a HUD statement which reviews in detail your fees and then amount of money needed for closing.  In most cases the money need to close  must be in the form of a cashiers check, so make sure you allow time to go to the bank prior to going to the closing.  Your Realtor will arrange with the title company the day and time of closing where you will sign the loan documents.
  12. Congratulations, you are now a home owner – After signing the documents, you get your keys and move in!  If there is any personalization you want to make to the home, its best to do it prior to moving in if possible.
  13. ENJOY!

As I have said since the beginning, please call a local  Maine REALTOR for all your real estate needs no matter how big or small.  We are trained professionals here to make your life easier. It’s best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.

Craig Candage

Landing Real Estate

Mobile: 207-653-2483

craig@landinghomesmaine.com

ULTIMATE HOME BUYING TIPS

 home-buying-tips

1. Don’t buy if you can’t stay put.

If you are not sure if you will be in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell sooner than later.

2. Start by knowing your credit score.

Since you likely be getting a mortgage to buy a house, you should make sure your credit history is as clean as possible. A few months before you even start looking at homes, you should get a copy of your credit report.  There are several companies that can provide you with a FREE credit report.  Be sure to only use one company and only pull it once.  Having you credit pulled frequently can alter the numbers in a negative way.  Make sure the facts are correct, and fix any problems you discover.

3. Before house hunting, get pre-approved.

Getting pre-approved will allow you to better understand what your purchase power is.  You will save yourself the grief of looking at houses you can’t afford.  The difference between pre-qualification and pre-approval letters; pre-qualification is based on a quick review of your finances and pre-approval is based on your actual income, debt and credit history.  You want to put yourself in the best position to make a serious offer when you do find the right home. Get Pre-Qualified here

4. Get professional help.

Even though buyers have unlimited access to home listings on the internet, most new buyers (and many more experienced ones) are better off using a professional agent. You should find an agent who is reliable, experienced and trustworthy and sign an Exclusive Buyer Representation Agreement.  This will ensure they have your best interests at heart and can guide you through the process from beginning to close.  This is where you build your TEAM of professionals to successfully help you buy a home.  Click here for a Southern Maine Real Estate Agent

5. Purchase a home you can afford.

It is important to work closely with your mortgage lender to determine what your purchase power is.  You can also utilize one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

6. Understand there are many different types of loan programs.

There are a variety of different lenders who offer different loan programs.  When one lender says no, another can say yes! There are plenty of low-interest mortgages that require little to no down payment.

7. Buy in a town with good schools.

In most areas, this advice applies even if you don’t have school-age children. For re-sale purposes, understand that strong school districts are a top priority for many home buyers who do have school-age children, which boosts home property values. Southern Maine Property Seach.

8. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points in exchange for a lower interest rate.  Points are an upfront portion of the interest that you pay at closing.  If you stay in the house for a long time, typically 3-5 years or more, it’s usually a better deal to pay down the rate with the points which will save you more in the long run.

9. Do your homework before making an offer.

This is where you work closely with your buyer agent to understand the sales trend of similar homes in the neighborhood. So before making and offer, consider sales of similar homes in the last 3-6 months. Again, your buyer agent is the expert and can guide you with how to make a great offer.

10. Hire a home inspector.

It is imperative to have a neutral party inspect the home to help you get familiar with all the systems of the home and to determine the condition and quality of them.  Their job will be to point out potential problems that could require costly repairs down the road.

If you are looking to buy/sell a home please call me.

Craig Candage

Landing Real Estate

207-653-2483

craig@landinghomesmaine.com