Ready to Move? Here's Your Checklist for Finding Your New Home

Shopping for a new home is exciting, but it can also get overwhelming quickly. Once you start scrolling through the listings, touring neighborhoods, and walking through houses, it’s easy to lose sight of what you actually need and what you can comfortably afford.

That’s why it helps to do a little homework before your search begins.

The Essential Homebuying Checklist

To guide you through the process, we’ve put together a practical homebuying checklist that starts before your first showing and ends when you’re ready to make an offer. Along the way, Luis Versalles, Mortgage Loan Originator here at Amplify Credit Union, shares a few tips for keeping your home search grounded in your finances.

1. Figure out how much home fits your budget.

Before you decide how many bedrooms you want or which neighborhoods you like, start with the numbers. Your homebuying budget should account for more than the purchase price. Depending on the property and your loan, your monthly house costs could include:

• Principal and interest
• Property taxes
• Homeowners insurance
• HOA dues
• Mortgage insurance, if applicable

You’ll also want room in your budget for utilities, maintenance, repairs, and the other costs that come with owning a home.

“Try not to start with the maximum amount you could potentially qualify to borrow,” Versalles says. “Start by thinking about the monthly payment that actually feels comfortable for your household. That can give you a much more useful price range when you begin to look at homes.”

Once you know what you’re comfortable spending each month, a mortgage lender can help you work backward to determine what purchase price may fit that budget.

2. Talk to a lender before you start shopping.

Even if you’re still early in the process, talking with a mortgage lender can help you set realistic expectations before you start touring homes.

A lender can walk through factors that may affect your homebuying budget, like:

• Your income
• Existing debts
• Available funds for a down payment and closing costs
• Mortgage options available to you

They can also help you understand how changes in purchase price, interest rates, taxes, or insurance could affect your estimated monthly payment.

“Having the conversation early can save you a lot of frustration later,” Versalles explains. “You can get a better understanding of the numbers before you become attached to a home that may not fit comfortably within your budget.”

You don’t need to have every detail of your home search figured out before reaching out. In fact, speaking with a lender early can help you answer some of those questions and give you a clearer starting point for your search.

3. Make your home wish list.

Now comes the fun part: deciding what you actually want!

Before you start listing, divide your preferences into three categories: your must-haves, nice-to-haves, and deal breakers. Be realistic about which category each item belongs in, and keep in mind that every house probably won’t check every box, especially if you’re buying in a competitive market. 

It can also help to separate things that are difficult or expensive to change from things that are mostly cosmetic. You can repaint a bedroom. Moving the house 20 minutes closer to work is considerably harder.

4. Choose where you want to live.

A beautiful house won’t necessarily feel like the right home if you don’t enjoy where it is. 

As you narrow down your search area, think about what your everyday life would look like there. Consider your commute, proximity to friends or family, nearby amenities, traffic, and access to the places you visit regularly.

There may also be financial differences from one area to another. Property tax rates, homeowners insurance costs, HOA dues, and even utility expenses can vary based on where you buy.

This is another place where your lender can be helpful.

“Two homes with the same purchase price don’t always have the same monthly payment,” Versalles says. “Taxes, insurance, and HOA costs can change the numbers, so I always encourage buyers to look at the whole picture when they’re comparing areas.”

5. Find a real estate agent.

You technically don’t have to work with a real estate agent to find a home, but having an experienced professional on your side can make the process much easier.

A buyer’s agent can help you:

• Find properties that match your criteria
• Schedule showings
• Understand local market conditions
• Evaluate comparable properties
• Prepare and negotiate an offer
• Navigate the transaction once you’re under contract

Look for an agent who knows the areas you’re considering and is comfortable working within your price range. And communication style matters here, too. You’ll likely be talking to this person frequently, so choose someone who understands what you’re looking for and is willing to explain the process as you go.

6. Know what to look for during a showing.

Listing photos can tell you a lot about a house, but they can’t tell you everything. 

As you walk through the property, pay attention to how the home actually functions. Does the layout work for your lifestyle? Is there enough storage? How much natural light does it get? Can you hear traffic from inside?

You can also keep an eye out for signs of deferred maintenance, such as water stains, damaged flooring, aging appliances, cracks, or other visible problems. You don’t need to become a home inspector during your showing since a professional inspection will come later. But you should be trying to determine whether the house is worth going after.

7. Compare homes without getting overwhelmed.

Houses can start to blend together after a few showings. To help combat this, take notes after each visit while the details are fresh. You might even create a simple scorecard based on the must-haves and priorities you identified earlier.

When comparing homes, return to this original list. A beautifully staged house can make it awfully tempting to compromise on something you previously considered important.

But the flip side is also true. Don’t automatically rule out a solid home because you dislike the paint colors or light fixtures. Cosmetic updates can often be changed much more easily than location, layout, or major structural features.

8. Revisit your original numbers when it comes time to make an offer.

Eventually, you may walk into a home that feels different than the rest. But before making an offer, revisit both sides of your decision. Does the home meet enough of your needs, and does it still make financial sense?

Versalles gives this piece of advice when it comes to making the decision: “Finding a house you love is important, but you also want to feel good about the numbers after the excitement of the purchase wears off.”

Start Your Home Search

Finding a home doesn’t have to begin with the endless scroll through listings. Starting with your budget, priorities, and financing can help you narrow your options before the search gets overwhelming.

And when you’re ready to move from browsing to buying, bring your team into the conversation. A local mortgage lender can help you understand what you can comfortably afford, explore your options, and prepare for the financial side of things.

This article was originally published on June 30, 2021.