Month #1: April
- Review your credit report
- Build and enhance your credit score.
Before you contact a real-estate agent you need to see if your credit is good enough to qualify for a mortgage. You then need to take the steps to make sure that your score is as high as it can be. Starting this step on month 1 will also give you a lot of time to correct any errors or inaccuracies on your report that may come up later.
Month #2: May
- Establish your income.
- Asses your debts. See what debts you have short and long term. Paying down your debts can help improve your credit score
- How much money do you have in savings? Brainstorm ways that you can condense on your daily life to increase the amount in savings.
- See if you pre-qualify for a mortgage. Take a calculator at home and see how large of a mortgage you can qualify for.
- What type of mortgage fits your needs. The more important question that needs to be answered on this step is "How much house can I afford" Write down your income versus your debts per month as well as what is in your savings so you can figure out how much per month you can afford as well as put in your down payment.
Month #3: June
- Look into your transportation options. Are you planning on taking the bus? See if there is a local metro that will come your way. Otherwise you need to look into other options.
- How are the schools rated? If you have children or are planning on having them in the future the quality of the school district you are moving into can be very important. Be sure to do research on what district is most appealing to you.
- What amenities do you want in your home? Now is the time to be thinking about all the little things in a home from how many bedrooms you want to what size yard. A home that is missing the fireplace that you want more than anything could be a deal breaker for you so you need to establish your priorities.
Month #4: July
- Check out the neighborhoods where you would like to live. You should start getting to know the areas you are looking to move into. Go for walks through the neighborhood and see if it is the atmosphere for you. You could even talk to homeowners who are outside to get a better feel for the area.
- What properties are available now that fit your wants and needs? Viewing homes online is a good way to get a better feel for what amenities they have and the looks of the inside of the home.
Month #5: August
- Find an experienced agent that you can put all of your trust in.
- Discuss the market conditions.
- Discuss your timeline.
- Discuss what type of property you want to buy.
- Determine whether you can afford what you want in that neighborhood.
Most home-buyers still say that their agents are the best source of information during the home-buying process. It is really important to find an agent that you trust and feel you can ask any type of questions. Also, this is the stage where you need to finalize what amenities you are willing to sacrifice.
Month #6: September
- Lawyers
- Home Inspectors
- Insurers
Buying a home is an in-depth process and although you already have an agent there is more research that needs to be done. A lawyer, home inspector, and insurer may become involved in the process and although they might not it is important to have someone lined up just in case you need to hire them.
Month #7: October
- Tax Forms You will need at least two years of tax returns so make sure you have that ready.
- Asset statements Make copies of your most recent savings account and be prepared toward the end you will need to make updates on these documents.
- Income statements
Month #8: November
- Which lenders are in your area? You should start researching local lenders that you would want to work with.
- Pre-approval You will need to bring in all of your documentation to get a pre-approval letter. This is not a loan guarantee but you are allowed to shop around and negotiate with a seller because you can show that you can obtain financing.
Month #9: December
- Sale Contract Reaching a sale contract may involve multiple counteroffers until you and the seller reach an agreement on the price and contingencies.
- Mortgage-related paperwork This is where your other research with professionals comes into play. You will need a home-inspector and maybe a lawyer to go over your contract.
Month #10: January
- Review your lease and give proper notice to your landlord.
- Review your utility service. Are you going to need a new provider? Do you need to transfer or terminate your services? Now is the time to look into that more in depth.
- Moving Arrangements. Are you going to move yourself or hire a professional? (Professional movers recommend one week per room if you're moving yourself)
- Research moving costs. Look into the price of a moving truck, professional mover, and possibly even the cost of getting a storage unit.
Month #11: February
- Pack
- Prepare the new place for your arrival
- What's your closing date?
- Can you move right in or will there be a delay between moving in and moving out. If there is you will need to make arrangements for the overlapping time.
- There may be no lights, heat, phone, cable when you move in. You will need to arrange for the utilities to be turned on at the proper time.
Month #12: March
- Don't leave yourself financially strapped if things don't go according to plan.
- Do not leave yourself without any other options.
If things do not go according to plan such as you can't move in or out at the exact time you had in your mind, have a back up plan.
Information brought to you by: MSN Real Estate
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