5 Things You Will Need Before Buying a Home

Buying a home is an exciting time, whether it be your first or fourth purchase. As you begin scanning a variety of homes online, visions of backyard gatherings, picking paint color, and decorating the walls play in your mind.

However, before you are able to hang the pictures and invite friends over, there are important things to get in order before even beginning your home search.

The Zielinksi Group suggests organizing these five things when you decide you are ready to buy a home.

Prequalify for a Mortgage

It’s tempting to scour the internet for the perfect place immediately upon deciding that you are ready to purchase property. To prevent falling in love with a home above your budget, it is important to prequalify for a mortgage.

Your realtor will be able to direct you to the right person to help you with this process, which involves submitting documentation such as pay stubs, tax records and proof of assets.

Your documentation will then go through verification with the lender, which may take a few days.

Finally, you will receive a pre-approval letter stating how much you will be permitted to borrow which you can show your real estate agent. You are now ready to begin your home search!

Money for Down Payment

The loan does not cover every cost included in purchasing a home. It is important to understand that you will need money for a down payment when purchasing a property.

The amount you decide to put down for your down payment gives the mortgage lender a loan-to-value ratio of the home. A typical down payment falls around 20% of the home’s value, however, your realtor will be able to help you decide what amount is best for the house of your choice.

Money for a Home Inspection

Getting a home inspection is a critical step in the home buying process as it will show you the condition of the home and its systems.

Inspection results will show you what costs and fixes need to be done not only immediately, but over time. The results can also be used as a contingency in your contract, which your realtor will help you determine.

In New Jersey, the average cost for a home inspection $400. This price fluctuates based on home size.

Money for Closing Costs

The Zielinksi Real Estate Group recommends saving some money after the down payment for closing costs.

When you finally decide on a property and your offer is approved, you will need to have money for closing costs, which can range from 3 – 5% of the sold price. Closing costs are fees paid to cover the costs to finalize your mortgage.

This transaction happens at the final stage of the buying process, when the title of the property is transferred to the buyer. 

Educated Real Estate Team

Last but surely not least, you want to make sure your realtor is knowledgeable of the area and market you are searching for. As you gear up to begin the house hunt, partnering with the right realtor who will provide support and education is critical.

In addition to the very important and necessary items discussed above, a quality realtor is the fifth item to check off before buying a home.

The Zielinski Real Estate Group promises to have your back during this process to assist you in organizing everything you need before making a decision on a home. We would love to be alongside you on your purchasing journey. Please contact us with any questions.