The purchase of a new home is an exciting time of your life. The beginning of a new stage with new neighbors, possibly a new neighborhood and different home that you can make your own. The transaction may be one of the largest ones that you will make in your life, but don’t let this overwhelm you. I have prepared a list of steps below to guide you through making it a smooth process.
Your first step is to take a look at your personal finances. Aside from doing your own assessment of your funds available, be sure to connect with a reputable mortgage agent. A mortgage agent will audit your credit, earnings and overall wealth to provide you with an amount that a bank will approve you to borrow. Your agent will also give you a prequalification letter which we will submit with your offer when that time comes.
Limit Your Spending:
Hold off on purchasing any large ticket items like a car or an expensive vacation. Aside from having cash available for your downpayment and closing costs, you will not want to significantly alter your wealth portfolio as this may have a direct effect on the amount of money a bank will allow you to borrow.
Not all neighborhoods are created equal. Each offers different amenities, culture and services which you will want to assess for selecting the right one for you. Ask yourself about your lifestyle preferences and see which location offers the best fit for you specifically. As someone who is very familiar with the Boston area, feel free to ask me questions.
A home inspection is one of the best reports that money can buy. A professional inspection of how your potential new home was constructed as well as what necessary repairs are needed is valuable information as you prepare to invest in this property. Knowing intimate details of the home will help you best prepare and budget for future repairs.
After the home inspection is completed, the next step is to sign your Purchase and Sale Agreement, commonly called “P & S.” This contract defines all terms of your offer and will be accompanied with your down payment funds upon signing. You may have some additional steps to complete on your end for financial approval, but this will be the next step until your final walk through which is followed by your actual closing.