what do you do when you buy a house

The Ultimate List of What to Do After Buying a House

• Set up your new address everywhere Now that you’re in your new digs, people need to be able to find you. ...
• Insurance You probably set up homeowners’ insurance while you were processing your mortgage paperwork, which is great. ...
• Home warranties Are you going to buy a home warranty? ...
• Cleaning and painting ...
• Get to know your new home ...
• Security ...
• Safety ...
• Living ...

Full Answer

What are the 10 steps to buying a home?

Home Buying: 10 Steps to Success Step 1: Check your credit report and score Step 2: Figure out how much you can afford Step 3: Find a real estate agent Step 4: Get pre-approved by a lender Step 5: Start looking at homes Step 6: Make an offer Step 7: Home inspection day Step 8: Get insurance and establish utilities Step 9: Closing day

How to buy a house as a first time home buyer?

First-Time Home Buyer Steps: A Guide on How to Buy a House. Step 1: Start gathering a down payment. The very first step every first-time home buyer should tackle is to figure out their finances. Buying a new ... Step 2: Check your credit score. Step 3: Get pre-approved for a mortgage. Step 4: Find a ...

What are the things to consider when buying a house?

Some of the first things to consider when you’re buying a home are how much you want to spend, where you’d like to live and what’s important to you as a buyer. Here a few questions to ask yourself: How much house can I afford? Am I going to take out a loan? How much do I have saved for a down payment? Can I afford my desired neighborhood?

How do I find a house to buy?

Searching available homes online is a great way to start your house-hunting process. According to the Zillow Group Report, 88% of buyers use online resources in their home search. Start on Zillow and search for homes in your target area, then filter by price and your must-haves. Additionally, your agent can send you listings and schedule showings.

What do you have to pay after you buy a house?

Homes have some predictable ongoing costs, including a monthly mortgage payment, property taxes, property insurance, and an HOA, if applicable. Other expenses, such as maintenance and repair costs, are less predictable but worth budgeting for so that you aren't surprised when sporadic expenses come up.

What should you not do after buying a house?

7 things not to do after closing on a houseDon't do anything to compromise your credit score.Don't change jobs.Don't charge any big purchases.Don't forget to change the locks.Don't get carried away with renovations.Don't forget to tie up loose ends.Don't refinance (at least right away)

What are the 5 steps in the home buying process?

This way to a home of your ownStep 1: Prepare your finances. Before you begin your search for a home, figure out what you can realistically afford. ... Step 2: Prequalify for the right loan. ... Step 3: Call a real estate agent. ... Step 4: Lock in your mortgage. ... Step 5: Prepare to close.

How does it work when you want to buy a house?

Buying a home involves finding the property, securing financing, making an offer, getting a home inspection, and closing on the purchase. National and state first-time buyer programs may be useful if you can't afford a high down payment. Once you've moved in, it's important to maintain your home and keep saving.

What is the first thing you should do after buying a house?

Here are some of the first things to do when you buy a new home.Secure your home. ... Purchase or review your home warranty. ... Connect the utilities. ... Check smoke and carbon monoxide detectors. ... Use your inspection report as a to-do list for maintenance. ... Refresh the paint. ... Refresh the flooring.More items...•

What is the first thing to do after closing?

Take Care Of Your Housekeeping ItemsClean And Paint The House. ... Change All Of Your Locks. ... Service And Clean Your HVAC Units. ... Test The House's CO And Smoke Detectors. ... Check The Water Heater. ... Turn Your Home-Inspection Report Into A Maintenance To-Do List. ... Put Your Closing Packet In A Safe Place.More items...•

What is a good credit score when buying a house?

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

Is owning a home worth it?

The short answer is yes. If you're financially ready, buying a house is still worth it — even in the current market. Experts largely agree that buying and owning a home remains a smarter financial move than renting for many. If you're on the fence about a home purchase in 2022, here's what you should consider.

How long does it take to close on a house?

It normally takes approximately 8-10 weeks from a property to go from being sale agreed to moving in. Sometime delays occur, particularly where either the buyer or vendor are in a “chain”, e.g. need to sell before they can buy. A closing date is usually agreed at the point a contract is signed.

Is 2022 a good year to buy a house?

Less Competition For Homes For Sale Another reason Fall 2022 is a good time to buy a home is that competition for homes is lower. According to the National Association of REALTORS®, more sellers have homes for sale than during any point in the last twelve months.

How much money should I save before buying a house?

If you're getting a mortgage, a smart way to buy a house is to save up at least 25% of its sale price in cash to cover a down payment, closing costs and moving fees. So, if you buy a home for $250,000, you might pay more than $60,000 to cover all of the different buying expenses.

How does buying a house make you money?

Key Takeaways. The most common way to make money in real estate is through appreciation—an increase in the property's value that is realized when you sell. Location, development, and improvements are the primary ways that residential and commercial real estate can appreciate in value.

How long does it take your credit to recover after buying a house?

This decrease probably won't show up immediately, but you'll see it reported within 1 or 2 months of your closing, when your lender reports your first payment. On average it takes about 5 months for your score to climb back up as you make on-time payments, provided the rest of your credit habits stay strong.

How long does it take to recover from buying a house?

The data shows that, on average, it takes people four years to recoup the upfront costs of buying their own home. It also says that homeowners can expect the rate of return from their purchase to fall between 8% and 10% per year.

What do they look for in a home appraisal?

The appraiser will consider all factors that could affect the property's value. These factors include the condition of the property, any upgrades or additions made to the property, the size of the lot and “comps” or recently sold properties of comparable size and condition in the same market.

Can I use my credit card after closing on a house?

How soon after closing can I use my credit card? If you already have a credit card (or opened a new card shortly after closing on a home mortgage loan) there's no need to wait before using the account.

Step 1: Check Your Credit Report and Score

Before contacting a lender, it’s smart to check your credit report. By law, you can get a free report once a year through Annualcreditreport.com. T...

Step 2: Figure Out How Much You Can Afford

Or better yet, decide how much you’re willing to pay. Just because you can qualify for a larger mortgage doesn’t mean you want to have that kind of...

Step 3: Find A Real Estate Agent

This person will be your lifeline through the process. Not so long ago, people didn’t have much to go on when selecting an agent. A postcard in the...

Step 4: Get Pre-Approved by A Lender

It’s a smart move to get pre-approved for a loan early in your home search. Zillow has an easy-to-use tool that lets you find a licensed lender in...

Step 5: Start Looking at Homes

Let the serious shopping begin! By now you’ve talked things over with your agent and you both know what you really want and need in a home. Armed w...

Step 6: Make An Offer

For most buyers, this is when the butterflies really show up. Once you’ve found a home you want your agent will work with you to craft an offer. Re...

Step 7: Home Inspection Day

If your offer called for a home inspection, this is a big day. Sure, you get to have a home inspector look over the home to make sure there are no...

Step 8: Get Insurance and Establish Utilities

If you already own a home, simply call your insurance agent and let them know you’re buying a new home. They will handle writing a new policy. If y...

Step 9: Closing Day

This is the big day. You’ll sign read and sign papers and then read and sign some more. Even though you’re just sitting around a table, it can be e...

Step 10: Get The Keys and Move In!

This is it. You did it. You are now a homeowner! Your sale contract will specify exactly how soon you get to move in. Sometimes it’s by a certain t...

How long does it take to buy a house?

No matter when you plan to buy, there are a few things you should know. On average, the process of buying a house takes roughly six months. That includes about 4.4 months to shop, plus 30-45 days to close. The process of buying a house includes more than just touring homes.

What does it mean when you get a clear to close mortgage?

Once you’ve completed the following steps, assuming everything checks out, you should receive the “clear to close,” which means that the lender has approved your purchase.

What does it mean when an appraisal matches your offer price?

If the appraisal matches your offer price: You should be clear to close. If the appraisal comes in above your offer price: Even better! This means not only are you clear to close, but you’re purchasing the home for a price below market value, giving you instant equity.

How many buyers use an agent in 2020?

In 2020, 85% of buyers used an agent during some part of their home search, according to the Zillow Group Consumer Housing Trends Report 2020. Typically, sellers fund the buyer’s agent commission, which makes using an agent a cost-effective option for buyers. Here are some areas where a buyer’s agent can help:

What does pre-approval do for a home?

In order to get pre-approved, a lender will calculate your debt-to-income ratio and assess your overall financial health by reviewing your:

Is buying a house stressful?

Buying a home can be stressful during the best of times, and it might feel positively overwhelming during a pandemic. Although a few of the details may look different right now, the overall process of buying remains the same — and understanding the key steps can help you reach your goal and make your dream a reality.

Is Zillow a safe home?

Noise from neighbors or traffic. Zillow-owned homes are clean, safe, functional and move-in ready at closing. Zi llow-owned homes also offer 3D tours and floor plans to tour from the comfort of your home, or self-tours that you can schedule at your convenience.

How does a real estate agent help you make the best offer?

Your real estate agent will help you make the best offer, along with any conditions, by figuring in your finances and overall budget. The seller may accept your offer or counter. You can accept the counteroffer or submit a higher offer until you reach a deal or decide to walk away.

Why do you need a home inspection?

Get a home inspection. Your new home may look stunning on the outside, but it’s what may be hidden that can cause problems down the line. That’s why getting a home inspection is an essential part of your home buying process. Because the buyer pays for the inspection, some buyers waive the right to an inspection.

What does a mortgage lender look at?

Your lender may also look at your gross monthly income to ensure you can pay all housing expenses, including insurance, taxes, etc. If you're confident in your credit score, then crunch the numbers via Credible to see what kind of mortgage offers are available to you.

What expenses should be included in a budget?

When figuring your budget, don’t forget to include expenses like homeowners and other insurance costs, earnest money, origination fees, closing costs, home inspection costs, appraisal and attorney fees, costs of appraisal and title, and more.

What happens if your appraisal is low?

However, if the appraisal comes in low, your lender may not approve the full amount of your loan. If the appraisal comes in higher than your offer, you are purchasing the home for less than market value, giving you immediate equity in your new home.

Why do mortgages have delays?

Since most delays are due to financial issues, visiting an​ online mortgage broker like Credible​ to get personalized rates and preapproval letters, just makes sense.

How to get a home loan with a low credit score?

Secure your financing. Get a home inspection. Go for a final walkthrough. Close on your home. 1. Check your credit score. Generally, your lender will determine the credit score needed to qualify for a home loan. The required minimum score, however, also depends on the type of mortgage you're seeking.

Credit Score Qualifications To Buy a House

Many first-time home buyers worry their credit score may be too low to qualify for a mortgage. Most of the time, though, you can qualify with a below-average score.

Income Requirements To Buy a House

There are no set income requirements to buy a house, and your monthly income isn’t the only determining factor. To buy a home, you will need to provide lenders the following:

Cash Needed to Close On Your Home

Many people think you need a 20 percent down payment to close on a home, but that’s not true. The typical down payment for first-time home buyers is about 7 percent, but some programs can help you buy a home with as little as 3 percent or no down payment at all.

Build a Budget Before You Buy

Home buyer competition can be fierce. The buyers who win are the buyers who prepare. Knowing how much you want to spend on housing each month puts you in a powerful position — you’ll know when to push and when to move on to another home.

Learn About Mortgage Loans

Almost 9 out of 10 home buyers use a mortgage to purchase their home. You probably will too. That’s why it’s important to understand the different mortgage options available to you.

Get Mortgage Pre-Approved

Mortgage pre-approval is a dress rehearsal for your final approval. Savvy home buyers always get pre-approved before house shopping because pre-approvals:

Hire a Real Estate Agent

In the United States, a home buyer’s real estate agent is paid for by the seller. It doesn’t cost you to have an agent. Because you aren’t the one footing the bill, you should get the best agent you can find.

What is the best way to get rid of moisture in your home?

Dehumidifier: Take the stuffiness or other unwanted moisture out of the air in your home. You can use a dehumidifier in basements, living areas and more.

How to keep your windows looking stylish?

Window treatments: Keep your windows looking stylish on the inside yet safe on the outside by purchasing and installing blinds (especially in your first-floor windows). If you have windows in your garage, tint them so intruders can’t see if you’re home or away. You can purchase privacy film at almost any major tool store.

Do you have to swap out locks when you get a new home?

New locks: When you get the keys to your new home, make sure you swap them out along with the locks ‒ immediately. You never know who still might have keys to the old ones. Read A Homeowner’s Guide to Door Locks to find the right fit for your new abode.

What is the first step to take when buying a home?

The very first step every first-time home buyer should tackle is to figure out their finances. Buying a new home (particularly for the first time) requires a mortgage, where a lender fronts you the money and you pay it back over time. However, in order to get a mortgage, you’ll need some sort of down payment.

What do first time buyers want?

Most first-timers will want a great real estate agent —specifically a buyer’s agent, who will help them find the right houses, negotiate a great real estate deal, and explain all of the nuances of home buying along the way.

What does a lender check?

A lender will check your score and report in order to estimate the odds that you will deliver your monthly payment, too.

What is closing on a home loan?

Closing is the day you officially get the keys to your new home—and pay all the various parties involved. That will include your down payment for your loan, plus closing costs, the extra fees you pay to process your loan.

What is a home inspection?

A home inspection is where you hire a home inspector to check out the house from top to bottom to determine if there are any problems with it that might make you think twice about moving forward. Think: termites, faulty foundation, mold, asbestos, etc. Sure, a lot can go wrong, but rest assured that most problems are fixable.

How much does closing cost?

Closing costs can be sizable, averaging anywhere from 2% to 7% of the home price.

Do you need an appraisal for a pre-approval?

Even if you got pre-approved for your home loan, your lender will want to conduct a home appraisal. This is where the lender checks out the house to make sure it’s a good investment. It’s similar to a home inspection, but for your lender.

What to address after buying a house?

After you buy a house, address any issues that were flagged on your home inspection report that the seller didn’t fix, Gonzalez says. Using the home inspection report as a guide, make a list of things to repair, update or maintain for the future, ranking them from most to least urgent. You’ll want to address items that can potentially blow up and cost you money later, such as dirty gutters, leaky pipes or doors and windows that need to be resealed.

What to do when you move into a new home?

Here are some of the first things to do when you buy a new home. 1. Secure your home. One of the first things to do when you buy a house is to change the locks and garage codes.

What does Gonzalez recommend for home warranty?

Need to know: Gonzalez recommends that homeowners shop around for the best deal on a home warranty, and find the one that’s tailored to their needs. For example, you might want to get coverage on big-ticket items, such as the water heater, furnace, air conditioning unit and kitchen appliances.

How much does a home warranty cost?

Home warranties range in cost from about $350 to $600, depending on coverage and the length of the contract. 3. Connect the utilities. It’s smart to connect all of your must-have utilities — like water, gas and electricity — before you move in.

Do you need a home warranty after closing?

If you don’t have one , it’s smart to consider purchasing a home warranty, even after closing. “There are many home warranty companies in the marketplace that cover a variety of items,” says Sergio Gonzalez, broker and owner of SG Associates, a real estate brokerage in Westlake Village, California.

Do you need a filing system for appliances?

Need to know: It’s a good idea to create a filing system for manuals and documentation for your appliances and home systems. If some of your new home’s appliances don’t have manuals passed along from the previous homeowners, do a quick online search. Most appliance companies publish manuals on their websites for easy access.

What do you need to buy a house?

As a home buyer, the question to ask yourself is, “Do I qualify for a mortgage?” If you do, odds are you’re in good shape to buy your first home.

What are the requirements to buy a house?

Income and employment requirements to buy a house. Next to credit, steady income and employment are other big requirements for mortgage approval. The lender must confirm that your income is consistent and enough to afford a mortgage payment.

How long do you have to wait to get a mortgage after bankruptcy?

These waiting periods vary by home loan program. For example: Conventional loan — You must wait four years from your discharge date after a chapter 7 or 11 bankruptcy, and two years after a chapter 13.

How long do you have to work to get a home loan?

For this reason, most lenders require 24 months of consecutive employment before approving a home loan application. This applies to self-employed mortgage borrowers, too, in which case you’ll provide your business and personal tax returns for the previous two years.

How long do you have to wait to file for a foreclosure?

The typical waiting period after a foreclosure is seven years, or three years if you have extenuating circumstances . FHA loan — You must wait two years from your discharge date after a chapter 7, and one year after a chapter 13. There’s no waiting period after a chapter 11 bankruptcy.

What is the first step to get a mortgage?

So when you’re ready to get serious about buying, your first step is to get pre-approved for a mortgage. Some home buyers make the mistake of shopping for a property before meeting with a lender. But with a pre-approval, you’ll know what you can afford before starting the process.

Is there a minimum income for a mortgage?

There’s no minimum income to get a mortgage, but some loan programs have a max income limit. Since a self-employed borrower’s income can fluctuate from year to year, mortgage lenders often average out their income over a two-year period, and then use this figure for qualifying purposes.