Before the Purchase: Setting the Stage
- Know Your Credit Score: Understanding your credit score is crucial. No matter how much you can afford or how large your down payment, without a qualifying credit score, it won’t matter.
- Define Your Budget: Determine a down payment amount based on your available funds and settle on a monthly payment that fits comfortably into your budget.
- Gather Key Documents: Start compiling important income and asset documents.
- Get Pre-Approved: Secure your Pre-Approval Letter for an extra edge during house hunting.
- Find a Real Estate Agent: Engage a local agent who knows the area inside out. They’re free and invaluable!
- Go House Hunting: Start exploring potential homes, keeping an eye on school rankings and flood zones.
- Make an Offer: Once you’ve found your dream home, make an offer. Consider asking for seller contributions towards closing fees. Also, explore Temporary Rate Buydown options for added financial flexibility.
During the Purchase: Navigating the Process
- Schedule a Home Inspection: Protect your investment by scheduling a home inspection during the option period.
- Third-Party Approvals: Ensure all third-party items are requested, reviewed, and approved.
- Appraise the Property: An appraisal will be ordered to determine property value. Be prepared to pay this fee when the report is ordered.
- Finalize Your Approval: Provide updated documents until final approval is received.
- Do a Final Walk-Through: Schedule a final walk-through of your new home 1-2 days before closing.
- Sign Closing Documents: Get ready to sign the final closing documents.
- Receive Your Keys: The moment has arrived! Receive the keys to your new home.
After the Purchase: Celebrating & Settling In
- Celebrate: You did it! Celebrate your new home with loved ones.
- Activate Utilities: Transfer and turn on all necessary utilities.
- Change Your Address: Update your address with USPS and on all vital documents/accounts, including IDs, bank accounts, employers, and insurance.
- Make It Home: Move in, decorate, and start making the space your own.
- Meet the Neighbors: Host a bar-b-q and introduce yourself to the neighborhood (don’t forget to share your great lending experience!).
- File Your Homestead Exemption: Mark your calendar to file your Homestead Exemption on January 1. Harris County even has an app for it – just ensure your driver’s license reflects your new primary address.
- Create Memories: Enjoy your new home and start creating lifelong memories.
Your home buying journey should be exciting, not daunting. Follow these steps to confidently navigate the process from start to finish.
