10 Important Things to Do Before You Buy a Home
Buying a home is a significant milestone in life, marking a new chapter filled with excitement and possibilities. However, before diving into the world of real estate, there are crucial steps to take to ensure a smooth and informed home buying process.
From financial readiness to property research, here are some essential things to do before you make that big purchase. And of course, if you’re buying a home in the Ann Arbor area, let Reinhart Realtors help you every step of the way!
Assess Your Financial Health
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Before even browsing listings, take a deep dive into your finances. Calculate your budget, including your down payment, closing costs, and monthly mortgage payments. Ensure your credit score is in good shape, as it plays a vital role in securing a favorable mortgage rate. Create a realistic budget that considers not just the purchase price, but also ongoing expenses like property taxes, insurance, and maintenance.
What’s just as important as what to do when maintaining your financial health is what NOT to do. In the days leading up to closing, make sure you do not: make a major purchase on a credit card (like a car), open or close any new lines of credit, change or quit your job, or neglect your bills.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage not only gives you a clear idea of how much you can borrow but also strengthens your position as a serious buyer in the eyes of sellers. Shop around and compare mortgage rates from different lenders to find the best deal that suits your needs. Then, work with your lender of choice to get pre-approved, which involves taking a detailed look at your financial situation. You will need to provide proof of assets, confirmation of your income in the form of paystubs, and other important documents. Your credit will also be evaluated at this time, so make sure you have a good credit score!
Reinhart’s John Adams Mortgage is a one-stop source for home financing. We’ve done our homework to provide the best loan products, saving you valuable time and money. We provide competitive interest rates and fees and a selection of lenders and products, which allow us to get you the best priced product for your needs. Plus, we are based in Michigan and our local processing minimizes the time spent during the process!
Plan for Closing Costs
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In addition to your down payment, be prepared for closing costs, which typically include fees for loan origination, appraisal, title insurance, and escrow services. If you’re not sure where to start, just remember closing costs typically average between 3–6% of the loan balance. Budget for these expenses to avoid any last-minute surprises on closing day.
Define Your Needs and Wants
Make a list of your must-have features in a home, such as location, size, number of bedrooms and bathrooms, yard space, and amenities. Distinguish between needs and wants to narrow down your search criteria and focus on properties that align with your priorities. If you’re making this decision with someone else, like your partner, make sure you are on the same page about your desired features — or at least, reach a compromise.
Research Neighborhoods
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Explore different neighborhoods to find the right fit for your lifestyle. Consider factors like proximity to work, schools, public transportation, shopping, dining, and recreational activities. Take the time to visit neighborhoods at different times of the day to get a feel for the area’s atmosphere and livability. Your agent (which brings us to our next point!) will be able to assist you with this one, helping you find your ideal neighborhood(s).
Hire a Real Estate Agent
A reputable real estate agent can be your greatest ally in the home buying process. Look for an agent with local market knowledge, a strong track record, and excellent communication skills. They can guide you through each step, from property search to negotiation and closing. This is one of the most important steps, as your agent will be your advocate and partner throughout the entire buying process.
If you live in or are moving to the Ann Arbor area, turn to a Reinhart Realtor for the expertise and guidance needed to help you attain your home ownership goals. The average Reinhart agent is full-time, has more than seven years of market experience, and has probably spent their entire career at Reinhart. They are also equipped with the training, tools and technology to skillfully assist you with your home search. Search our agent directory to start working with a Reinhart Realtor!
Attend Open Houses and Showings
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Visit potential properties to get a firsthand look at their condition, layout, and overall appeal. Take note of any red flags or deal-breakers, but also keep an open mind as cosmetic issues can often be addressed with renovations or updates. Open houses are a no-commitment way to get acclimated with what’s on the market — so you can know first-hand what you want most in your future home.
Ready to start attending open houses? Check out the many open houses happening in the next few days in the Ann Arbor area!
Make an Informed Offer
Work with your real estate agent to craft a competitive yet reasonable offer based on market conditions, comparable sales, and the property’s condition. Be prepared to negotiate with the seller to reach a mutually beneficial agreement.
Conduct Due Diligence
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Once you’ve found a property you’re interested in, conduct thorough due diligence. Review property disclosures, inspect the home for any hidden issues or structural concerns, and consider additional inspections like pest, mold, or radon testing if necessary. Understanding the condition of the property is essential to making an informed decision.
Review the Contract Carefully
Before signing any contracts or agreements, carefully review all terms and conditions with your real estate agent and legal counsel if necessary. Pay close attention to deadlines, contingencies, and any potential risks or liabilities. Don’t worry — your agent will also help you with any real estate jargon you don’t understand!
Ready to Get Started?
Buying a home is a significant financial and emotional investment, but with careful planning and preparation, it can also be an incredibly rewarding experience. By following these essential steps and having Reinhart Realtors on your side, you can navigate the process with confidence and peace of mind, knowing that you’ve made a well-informed decision for your future. Happy house hunting!