Ignite FB Tracking PixelChecklist for buying a house: First steps for would-be homeowners - Evelyn Forston
NAI G2 Commercial Real Estate
Evelyn Forston, NAI G2 Commercial Real EstatePhone: (205) 901-6756
Email: [email protected]

Checklist for buying a house: First steps for would-be homeowners

by Evelyn Forston 11/27/2023

If you’re feeling overwhelmed by the prospect of home buying, it can be helpful to create a checklist for buying a house. Using a checklist can help you right from the beginning, since there are several important steps to take before you even begin your home search, like securing a mortgage lender.

To help get you started, here is a checklist for preparing to buy your first home:


Determine your debt to income ratio (DTI)

Knowing your own financial situation is crucial to a successful buying experience. Mortgage lenders offer different loan options affecting your ongoing mortgage payments, and it’s easier to compare the choices when you know how much you can comfortably afford.

You may also find new opportunities when examining your finances, like if you qualify for a lower interest rate because of a high credit score.

The best first step in this direction is to find out your debt to income ratio, or DTI. This will help you determine how much you can afford to pay monthly for your mortgage and other property-related expenses.

A simple formula for DTI is: gross monthly income / monthly expenses = DTI


Save for a down payment

The down payment is one of the major expenses you’ll encounter when buying a home. The down payment for your mortgage loan helps determine how much money you end up borrowing and paying back, including the interest rates.

While larger down payments have advantages, some mortgage lenders allow as low as 2% of the purchase price.


Hire a real estate agent

Real estate agents can help you navigate the real estate market and guide you through the home buying process. It’s helpful to find a buyer’s agent who specializes in representing clients wanting to buy rather than sell.

Not only can they help you with house hunting and finding your dream home, they can assist you with all the paperwork involved in the home buying process.


Get mortgage preapproval

By getting a preapproval letter from your mortgage lender, you can show sellers you’re a qualified and motivated buyer. It also secures your loan amount based on a detailed examination of your current financial situation, including credit score and report, investment account statements and income.

Taking care of these important tasks before you begin searching for a new home will help make the rest of the process smoother and quicker. Keep these steps in mind if you want to take the next step towards becoming a homeowner.

About the Author
Author

Evelyn Forston

Hi, I'm Evelyn Forston and I'd love to assist you! Life is full of transitions… it changes, and we change with it. Whether it’s coming together with another person to spend your life together, loved ones moving on or moving in, I’m here to help you! I understand it. From picking out my favorite items to keep, to filling a home with furniture, I know what it’s like. I’ve done it and I understand it. I know what it’s like to buy your first home by yourself, to sell your home, to move to a bigger home and build a life with someone. If you’re ready to downsize and move to an apartment or smaller home, I’m here to help! I've done that as well! If you want a home that is your sanctuary or a lively home teaming with activity, my goal is to help you satisfy your functional, financial and aesthetic needs in a home. I’m here for you, from your first home to forever home!

Additionally, I love aiding my clients in buying/selling/leasing commercial property. Reach out to me if you need a professional to assist you!

Call me at 205-901-6756

I'd be honored to put my over 15 years of multiple aspects of Real Estate experience to work for you!