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House Buying Checklist
The path to purchasing your new home can be as overwhelming as it is enthralling. As you search for just the right home, there are many aspects to keep track of and it's easy to get sidetracked. A checklist can help you stay on target. Here are some suggestions to get started.
- Learn and prepare.
Be an informed buyer. Review and print information on this web site and the resources available at the national Coldwell Banker web site and at Realtor.com. Your Coldwell Banker sales associate can also assist by providing printed tips and guides.
Familiarize yourself with the mortgage process. The Coldwell Banker Mortgage Center has the information and online tools you need to get started.
Take a look at your financial status and determine how much you can afford. A Coldwell Banker sales associate can help you with this step.
- Select a real estate agent.
Working with a professional Coldwell Banker sales associate will make the process much more efficient. It's important to choose one that you feel comfortable with, and one who is responsive to your needs.
Your sales associate will provide you with helpful resources and serve as your personal guide throughout the search and home buying process.
- Get prequalified and preapproved for a loan.
Obtain prequalification and preapproval from a mortgage lender. Your sales associate will require your mortgage qualification. This step will add weight to your offer. When you apply online at the Coldwell Banker Mortgage Center, you'll receive a response within three hours.
Be knowledgeable about your own credit standing. Apply for a credit report and take action to correct any inaccurate or incomplete information. The Federal Trade Commission provides tips on how to access and the steps to correct your credit report. You can also request information by phone, toll free at 1-877-382-4357.
- Begin your home search.
Understand the various types of housing available (single family, townhouse, condominium) and the benefits and drawbacks of each.
Create a list of desired features and styles (ranch, two-story, etc.) including minimum bedrooms, bathrooms, square footage and lot size. Be able to differentiate between your (and your family's) needs and wants -- in other words, be mindful of what features you can live with or without. If schools are an important consideration, make sure you know the district in which your potential new home is located.
- Get funding.
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:
- Down payment
If down payment is less than 20 percent, the mortgage will need to be guaranteed by an another party (Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI)
- Your credit rating.
Whether or not you are a first-time buyer (in most states you qualify as a first-time buyer if you have not owned property for a period of three years). First-time benefits may include smaller down payments and below-market interest rates. For more information about funding, visit Coldwell Banker Mortgage.
- Make an offer.
Here are ten important questions you should ask your Sales Associate and why you should ask them (depending on the type of agency relationship you have with your Sales Associate, he or she may not be able to assist you with these specific questions):
Property Specific
How long has the property been on the market?
Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.
Have there been any price reductions during the listing period?
Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.
Have there been any other offers on the property?
Why: It will be helpful to know what offers have been turned down and for what reasons.
What is the motivation of the seller?
Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.
What personal items are included in the sale?
Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.
Neighborhood Specific
What is the price range of sold properties in the area?
Why: This information is important since it will indicate the top and bottom of that specific market.
What is the average time on market for properties in this area?
Why: Short market times may indicate a seller's market. If this is the case you may face competition from other buyers.
What is the list to sale price ratio in this area?
Why: This information will indicate seller's past willingness to negotiate and by how much.
What is the average sales price per square foot of recent solds?
Why: This approach to establish value works best in Planned Unit Developments ( PUDs) and/or where there are similar homes, lot sizes and improvements.
What other known factors about the property or neighborhood could affect value?
Why: Review the Seller's Disclosure Statement very carefully with your Sales Associate.
Final Recommendation
If you will be financing the property, get preapproved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in the sellers' market.
- Insurance
Learn about the various types and obtain homeowners insurance:
Casualty: The most common event insured against is damage from fire. Homeowners insurance may also cover losses due to wind and hail. If your home is in a flood-prone area, you should consider a flood policy.
Liability: This coverage protects against lawsuits resulting from injuries that occur to visitors or guests in your home.
Personal Property: Casualty or hazard insurance covers repair or rebuilding. Personal property coverage protects what is inside the home. Coverage varies, and it is important to clearly understand the limits of the coverage.
- Closing.
Items you'll need to bring to your closing appointment:
Closing cost estimate or Good Faith Estimate provided by your Sales Associate or lender.
Homeowners' Insurance Policy which must be obtained prior to the date of closing.
Settlement Statement which will be available within one or two days prior to your closing session. It outlines the total amount of cash you will need at closing and how funds will be dispersed.
Certified Funds: On the day of Closing you will need certified funds for closing costs and down payments. Your lender will help you with the documentation required.
- Move in.
The most exciting part of your home-buying process. It will be more enjoyable if you make and follow a moving plan. The Coldwell Banker Concierge will be a valuable resource in providing information and helping you arrange relocation, moving and move-in services. Coldwell Banker's Preferred Vendors have been pre-screened and in many cases offer specials and discounts to Coldwell Banker clients.
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