So you’ve given it a lot of consideration, spoken to a lot of people about it, and eventually chosen to settle down somewhere? Congrats! With over 1.3 million new houses scheduled to be constructed in the United States in 2018, you’ll have plenty of alternatives.
While looking at possible houses may seem to be the most enjoyable part of the process, adopting a holistic view of everything you will need to accomplish – from beginning to end – can make what might appear to be a difficult task feel much more manageable and, in the end, not so awful.
We know you’ve got a lot on your mind when it comes to moving, so let us handle the details while you concentrate on the important stuff, like which neighborhoods you prefer and how many bedrooms you’ll need. Here’s a helpful checklist that includes everything we believe you’ll need to think about.
Budget, budget, budget, budget, budget, budget, budget, budget, budget, budget Setting a budget from the start that takes into consideration all of the actual expenses connected with purchasing a house – and let’s face it, there are a lot of them besides the property’s price – can help take some of the stress out of the process and protect you from biting off more than you can chew financially.
You’ll need to budget for:
A down payment – the amount varies depending on your financial situation and what is recommended (or even needed in certain situations), but typically it’s around 20%.
- Costs of inspection – Before signing that deposit check, it’s a good idea to spend the few hundred dollars it usually takes to verify the house is in excellent working order and to find out if there are any major difficulties up front.
- Closing costs — they include the transfer of the legal title of the property from one party to another, as well as appraiser and lender fees, and often amount to 2-5 percent of the home’s total purchase price.
- Property insurance and private mortgage insurance (PMI) – the former protects you as a homeowner from potential disasters like fire or theft, while the latter protects the mortgage lender in the event you default on the loan and is typically required if the mortgage covers more than 80% of the home purchase price.
- Refund of any prepaid taxes or homeowners association (HOA) dues that the seller of the house has previously paid.
- Life insurance – if the breadwinner is no longer able to pay the mortgage, a life insurance policy may assist safeguard your family. It’s difficult to contemplate, but it’s necessary to do so.
We also suggest setting up an emergency savings account with at least six months’ worth of costs so that if you need to make any unexpected but costly repairs, such as replacing a water heater or repairing a roof leak, you won’t have to dip into your regular budget.
Plan Your Next Step.
The logistics of the migration will be covered in the following steps:
- Hire movers – It’s all too easy to overspend for movers, so acquire quotations from a few different companies before deciding. Friendship referrals are often the best bet.
- Start packing non-essentials to get ahead — you’ll thank yourself later when you’re not scrambling to pack forgotten big serving dishes or a closet full of winter jackets the night before the movers arrive.
- Before you move in, get a locksmith to install new locks in your new house.
- Resolve any outstanding debts from your existing residence.
- Make sure your utilities and property insurance are up to date on your first day in your new home.
Who Should I Tell?
It’s easy to forget in the bustle of activity around the purchase and move into your new house – but some people need to know where you’re going! The following is a list of people you should notify about your new address:
Services and Utilities
- Water \sGas \sElectricity
- Telecommunications (mobile and or landline)
- For mail forwarding, go to the post office.
- Internet and cable/satellite service providers
- Companies that provide credit cards
- Your company’s boss
- Insurance companies — house, car, life, you name it – they’re all there!
- Companies that manage pension funds
- Friends and family members
- A gym or a sports club
- Library \sSchools/colleges
After You’ve Settled In
Monthly expenses will include:
- Payments on a mortgage
- Insurance for your home
- Your state’s property taxes
- Any home renovations on the horizon?
…this should put you in an excellent position! Just remember that, like any major shift, it will be both frightening and exhilarating, and it will take some time to iron out all the nuances. You may take a step-by-step approach to the house purchasing process with the aid of our checklist above, and before you know it, you’ll have all those minor things figured out and be able to enjoy your new home dear home.