Chattanooga Homebuying Checklist
Buying a home for sale in Chattanooga is a good decision. However,there is a need for you to prepare ahead of the process so that you can get the best deal. The preparation often involves different financial and personal steps that you must take before and during the buying process.
Check out this homebuying checklist that can help you buy a home successfully.
- Have a monthly budget
If you want to buy a home, you should understand that it is a financial commitment that will affect finances. Therefore, you should get started by having a monthly budget that allows you to manage your expenses and incomes.
- Start saving for a down payment as well as closing costs
Homebuying usually requires a particular down payment which may be about 20% or more of the cost of the home (sometimes only 3% down). Without this financial obligation, you will be unable to purchase a home even if you have been approved for a mortgage. So, saving towards your down payment should be a crucial part of your monthly budget.Also, donot forget the closing costs that you will use to close the deal with the home seller.
- Focus on your credit score and report
It goes without saying that your credit score plays a pivotal role in determining whether you can obtain a mortgage or not. Before looking for a home that you like, make sure that your credit score is excellentand properly maintained. If your credit score is poor, then it is time for you to startbuilding it.
- Get a real estate agent
Although there is no crime in buying a home yourself, you can get a lot from the experience and expertise of a real estate agent in Chattanooga. Apart from helping you find a home, an agent can help you manage the whole homebuying process and even help you find a good mortgage option. So, you should endeavor to hire the services of a trustworthy and seasoned real estate agent. You can find an agent online or get a recommendation from a friend or family that used the services of one recently.
- Get a pre-approval letter
Don’t look for any home until you have found a reliable mortgage lender. Therefore, take the time to put together your paperwork and get pre-approved. Your pre-approval letter will contain information about the pre-approved amount, the kind of loan you can obtain, and the most suitable loan term.
- Check out various mortgage lenders and contact the best one
Search for different mortgage lenders online to find the ones whose requirements suit your specific needs. Choose and contact the lender that offers you the best deal.Carefully go through the terms of the mortgage lender before agreeing to work with them.
- Put together the necessary documents
Before getting the mortgage, there are certain documents that you need to present. These documents include
– – Payslip for the last 2 months
— W-2s for the last year
— Proof of any additional income
— Tax documents for the last two years
— Bank statements for the last 3 months
— Account statement for any investment
— Statements concerning all loans
— Copy of your driver’s license
— Document showing your residence for the last 24 months
- Find the right home
When working with your real estate agent, look for a home that suits your needs and preferences. Consider your preferred neighborhoods, facilities in the home and environment, and other factors before choosing a home.Be sure to tour the home before making an offer.
- Make an offer and close the deal
Finally, your Chattanooga real estate agent needs to speak to the homeowner on your behalf and make a reasonable offer. Of course, you must understand that negotiation is essential and this is why you need an agent who understands how everything works in this area. Once the home is under contract, your agent should walk you through every step for a successfully closing.