You might not realize it, but qualifying for a home loan, making an offer, and signing documents at the closing are only part of the home ownership process. Once you receive the keys to your new home, there are still steps you need to take before truly calling your house home.
Settling In
The most obvious step you’ll take next is packing and moving your household contents. If you plan on hiring a professional, check with your real estate representative to see if he or she knows a reliable mover. Once you’ve moved in, one of the first things you want to do is change the lock on all entry doors. This ensures that only your household has access to your home. You’ll also want to make arrangements for special services such as paper delivery, cable and high-speed Internet service, and garbage and/or recycling pickup. Get to know your neighborhood. Introduce yourself to your neighbors. They can give you inside information such as babysitters, names of contractors and more. Take a tour of your new neighborhood. Locate the nearest fire and police stations, as well as hospital. This will also give you an opportunity to find the closest grocery store, gas station, parks, etc.
Organizing
Next up is making sure that all of your documents are in order and that others know where you are. At your closing, you more than likely were given a copy of your settlement papers. Make sure that you file them away somewhere that is easily accessible for tax time. Or, keep them with your other tax records. Next, don’t forget to finish sending out your change of address to family, friends, magazines, and organizations that may not have been a part of your primary group. Notify the Internal Revenue Service of your change of address. You can download Form 8822 from the website www.irs.gov or call (800) TAX-FORM (829-3676) to order the form by phone.
With a change in your address, there are other documents that need to be changed as well such as auto registration, driver’s license, and voter registration. Check with your state organizations to see what the procedure is. Also, don’t forget to notify your insurance agent of your change of address so that your policies remain up-to-date.
Improve and Maintain
After you’ve unpacked your boxes, it’s time to get to know your home. Locate your smoke detectors, furnace and switch or fuse box. Go room to room and make an improvement checklist such as new carpeting, window dressing or painting. Note regular maintenance that will be required such as cleaning water drains and replacing air filters and batteries in smoke detectors. After you’ve completed an inventory, you may decide that you want to hire contractors to help with decorating needs. You may even decide that you want to hire a home cleaning or lawn care service. Your real estate professional is a good source for getting reliable recommendations.
There is much to do when you move into a new home. However once you’ve unpacked the last box, painted the final room, and all your services are running smoothly, you can sit back in your favorite lounging chair and enjoy the benefits of home ownership.
Buying Your First Home? Here’s What You Need to Know
By Michelle Fradella, Broker – Pinnacle Real Estate Services, LLC
You’ve made the decision to make one of the largest investments you’ll ever make in your life-buying your first home. You’re excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?
The homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before making the plunge.
Getting a mortgage-Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.
Mortgage Payments-The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a real estate professional, you can calculate out how much they you be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
Down-Payment-The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. Your real estate professional will be able to explain the different options available to you.
Closing Costs-First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 10 percent of the home sale amount is not unusual. Add that to the down-payment and you’ll have quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.
Making offers-Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Condition of the Home-Buying a “problem” home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your real estate professional may advise you to hire a home inspector before making a serious offer. That way, you know what you are getting into.
Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.