Buying your first house can be an incredibly daunting process. You are faced with many terms that you cannot understand, and you cannot achieve how many necessary steps there are in the process.
However, the process of buying a home is not limited to visiting homes. You also have to look at your credit and funding options find the right realtor, make offers and negotiate, get inspected, get ready to move, and finally close your new home.
Complete home buying checklist
Documents You’ll Need to Buy a House
1. Proof of income and assets
Pay stubs or other proof of employment
Bank statements
Retirement account statements
Tax returns
Gift letters
Form 4506-T (this form gives your lender permission to pull a copy of your taxes from the IRS)
2. Proof of employment.
W-2s
1099s
3. Information on debts
4. Credit report
5. Pre-approval letter
6. Loan Estimate
Estimated interest rate
Monthly mortgage payment
Estimated tax and insurance costs
Estimated closing costs
Potential penalties (including prepayment penalties)
7. Offer letter (your love letter to the sellers)
8. Purchase agreement
Identification details for both buyer and seller
Property description and condition
Purchase price
All contingencies and conditions
The rights and obligations of both parties
All items included in the sale, including appliances
Earnest money deposit amount
Closing costs (itemized according to who’s paying for what)
Closing date
Terms of possession (in other words, when you’ll get the keys to the place)
Signatures of both buyer and seller
9. Seller’s disclosures
10. Earnest money check
11. Home inspection report
The foundation: cracks, crumbling, or gaps
The exterior: siding, gutters, downspouts, and grading
The bathroom fixtures
The appliances, if they’re included in the sale
The roof: estimated age and condition
The plumbing system
HVAC systems
The electrical and gas system
12. The home appraisal
13. Title review
14. Closing Disclosure
Interest rate
Monthly mortgage payment
Tax and insurance costs
Closing costs
Potential penalties (including prepayment penalties)
15. Cashier’s check or wire transfer
16. Homeowners insurance declaration page
17. Property survey
18. Government ID
Documents for real estate agents during the home buying process:
1. Buyer’s agent agreement
2. Purchase agreement
3. Addenda, amendments, riders
4. Sellers disclosure
5. Home inspection report
6. Closing disclosure
7. Title insurance policy
8. Property deed
Being a first-time homebuyer can be daunting but equipping you with the necessary knowledge and resources doesn't have to be. By following the steps described in this article and working with a trusted realtor, you can concentrate on what matters: enjoying your new home.
Use this home buying checklist as a checklist for your entire home buying process: gather your documentation, apply for a mortgage and find your dream home. This is a detailed description of each stage of the process.
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