Potential Homebuyers Urged To Follow Checklist

Realtors recommend homebuyers complete eight steps before seeking a mortgage

Potential Homebuyers Urged To Follow Checklist
April 21, 2016

Realtor.com experts stress that potential homebuyers should not go into the housing market unprepared. With interest rates hitting all-time lows, many renters are considering making the leap to homeownership, but before they start looking at properties and applying for mortgages, real estate professionals ask that they consider eight different factors.

The first item on the Realtor checklist is finances. Fidelity Investments Senior Vice President Kristen Robinson stresses that those who have not looked at their finances to see if they can afford everything that comes with homeownership may want to wait. The second item is to get a credit report, as potential buyers need to know their credit score.

While there are a number of programs that require little or even no down payment, buyers are still going to need to have some cash on hand. Conventional mortgages may require anywhere from five to 20 percent of the total price of the home as a down payment, and for some, that’s a sizable amount.

The remainder of the Realtor checklist includes:

  • Learn about the mortgage process by attending a home-buying seminar or speaking with an expert.
  • Find a real estate agent. Many suggest talking to at least three agents before selecting one.
  • Learn about the various mortgage options available and find a potential lender.
  • Estimate closing costs. In many cases, the buyer may have to pay between three and six percent of the total purchase price.
  • Finally, experts advise homebuyers to consider the future, including what will happen to their property if they lose their income.

Moneytips can help you refinance your existing home loan.

Photo ©iStockphoto.com/baona

  Conversation   |   8 Comments

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Steffanie | 04.21.16 @ 15:37
Very good list and timely as my kids are starting to look for a home. Thanks!
Erin | 04.21.16 @ 15:37
I wish we had had a checklist like this when I were in the process of buying our home years ago. I think we did alright, but it would have been nice to have more organization and know we were taking care of every detail. Great information!
Carla | 04.21.16 @ 15:38
I wish I had this list when we bought our home. We got caught up in the excitement and did several think hastily.
Brittany | 04.21.16 @ 15:39
This is a great list. I am starting the process of looking into buying a home, so this was useful
Elaine | 04.21.16 @ 15:40
Weighing the options and looking at the future has always been my prob. Been working on that one bc if I don't, I will prib never again go through with getting another home. Too many ups and downs financially for me to feel comfortable.
Kailie | 04.21.16 @ 15:40
I just recently bought a home and was completely clueless when it came to the process and what steps to take. Having a list like this would have been very helpful
trish | 04.21.16 @ 15:42
Great information to share with my neighbors son who is moving out this summer. He hasn't started looking yet so will pass this along to him
Kyle | 04.21.16 @ 15:42
This is a wonderful took for people looking to take the steps needed in buying a home. A friend of mine is beginning those steps, so I'll be passing this link along to her. Thank you money tips!
$commenter.renderDisplayableName() | 12.04.20 @ 08:35