Checklist of due diligence for real estate
If you’re buying a home, you’ll want to consider some factors before making your purchase. Buying a home is probably the most expensive decision you will make. Need a checklist of actions to perform due diligence before signing the real estate contract. By doing this, you will decrease your chances of buying a house that is not the most suitable for you and your family.
Price
Before even looking at homes, you need to determine what you can afford. The best way to do this is to get a pre-approved for a mortgage loan. Contact a mortgage lender or bank and explain that you need a pre-approval letter. The lender then will ask you to provide a series of documents verifying your gross monthly income and debt levels. These documents may include your two most recent checks paid, your most recent tax returns, bank statements to your current account and savings account and status of the most recent credit card. Once lenders look at these papers and performs a check of your credit, will send a letter saying how much money the bank is willing to lend to homebuyers. Armed with this information, save time by limiting your search for homes that are within your price range. The pre-approval letters also make you a more attractive buyer for vendors.
Haves
Then make a list of the features you must have in your new home. This will prevent even look at homes that do not have these features. This is more important than it seems, could start your search for a new home insisting that your new home should have a bed modern master bath. But if you’re looking at homes that do not have this and decide to buy one anyway (the price may be right or location could be perfect), you might regret your decision a week or a month later, when you’re taking a shower in a narrow and outdated bathroom. This can lead to buyer’s remorse, not something you want to have after spending $200,000 or more for a new home.
Your finances
The fact that the bank will approve a mortgage of $250,000 does not mean you can comfortably make the monthly payments that come with that loan. Before searching houses, do reviews of your finances. Determines the size of a mortgage payment each month comfortably is doing. Do you want to buy a house only to immediately start sweating you will be able to pay for it every 30 days?
Location
Make a list, too, of the ideal places for your new home. However, this list should include more than just city names. It should also include whether it is important for you to live within walking distance of public transportation, if you need to live near a neighborhood school if you want to live in a neighborhood where neighbors are close or if you prefer to live in the countryside. Detailing localization features as most want is less likely to give up the home buying any. This will help to completely avoid buyer’s remorse.