Welcome to part 2 of the process of buying home checklist!
Want to see part 1 of the process of buying home checklist? Check this post out!
This post is about the process of buying home checklist.
Let’s dive into the top 7 steps in the process of home buying checklist:
1. Home Inspection
This step is super important! Now, this is also a variable buyers sometimes waived during a bidding war. However, it is not recommended to waive the home inspection unless you are comfortable making repairs completely on your own dime.
2. Appraisal
An appraisal is the process of calculating the home’s market value. If you’re getting a mortgage, your lender will ask for an appraisal. This is to ensure the value of the home lines up with the loan amount.
3. Homeowner’s Insurance
Homeowner’s insurance provides financial protection in the case of mishaps that happen on the property. This includes property damage or liability for injuries. There are a few factors included in homeowners insurance such as: dwelling coverage, structure coverage, personal property coverage, liability coverage, and more. Take this time to look over different policies and offerings from companies!
4. Title Search and Insurance
This is to check that there are no ownership disputes for the property, protecting the buyer and potentially the lender. There are 2 types: Owner’s Title Insurance and Lender’s Title Insurance. The coverage includes forged/fake documents, any undisclosed heirs, mistakes/errors with public records. Essentially, risks that could come to light after the purchase.
5. Complete the Closing Disclosure
This outlines the final terms and cost of the loan. It covers topics like the terms, monthly payments, closing costs, loan fees, taxes, escrow account details, and more.
6. Final Walk-Through
This is super important, too! This is when you get to visit the property one last time before closing. This is the time to double check that everything is in the agreed-upon condition, as well as checking that the negotiated repairs have been completed.
7. Closing
Getting the keys! Signing the last set of documents to transfer ownership, paying for closing costs. Time to move in!
To reiterate, the top 7 are:
- Home Inspection
- Appraisal
- Homeowners Insurance
- Title Search and Insurance
- Complete the Closing Disclosure
- Final Walk-Through
- Closing
There you have it! Interested in learning more about the process of home buying checklist? Check this post out for part 1!
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