Buying a new home is a huge investment, and with that investment, there are several important documents you need to obtain before you officially commit. Whether you plan to buy a house by yourself or work with a professional, it’s essential to get all of the paperwork done ahead of time in order. This will help you avoid any surprising setbacks.
7 Pieces of Documentation You Need to Buy a House
Buying a home can be complex, and the paperwork can get a little out of hand, but don’t worry! We’ve taken the time to put together a list of all the documents you’ll need to obtain before buying a home. Here are seven key documents you should get when buying a new house.
1. Credit Check
Before you can start looking for a house, you should run a credit check to see the current state of your credit. This will help you understand your credit score and identify any areas that need potential work. It’s also a wise idea to get a full credit report to look for any discrepancies or errors that need to be fixed.
Credit scores are essential in determining whether you can get approved for a mortgage and how much you’ll be able to obtain. It can also impact your interest rates and the types of mortgages you’ll get approved for.
2. Pre-Approval Letter
Once you’ve run a credit check and have worked on improving your credit rating, you should get a pre-approval letter from an approved lender. This will give you an estimate on how much money the bank is willing to lend you, giving you an idea of how much house you can afford. It’s best to get this before you start looking for a home to know which ones fall into your price range.
3. Bank Statements and Tax Returns
If you’re going to get pre-approved by an approved lender, they’ll need to review your financial situation, so you’ll have to gather your most recent bank statements and tax returns. This will give them a complete picture of your finances, helping them better assess your eligibility for a loan. These shouldn’t be too difficult to obtain.
4. Home Inspection
Once you’ve found the perfect home, it’s time to hire a home inspector to check it out and ensure it’s in good condition. This will alert you to any potential issues with the house and give you an idea of what you’re buying. This sort of thing doesn’t happen until later in the home-buying process, but it’s a significant part of buying a new home.
5. Title Search
Once you have the house you want, you’ll need to do a title search to ensure the legal ownership of the house is clear and that there are no liens or other legal issues attached to it. The last thing you want is to invest time and money into a property you can’t even purchase.
6. Purchase Agreement
Once you’ve picked the home you want, it’s time to create a purchase agreement. This document sets the terms of the sale and should be signed by both the seller and the buyer. It will outline the specifics of the deal and will become legally binding once both parties sign it.
7. Home Insurance
When you purchase a house, you’ll need home insurance to protect yourself and your property. So, it’s best to talk to a qualified insurance agent to get the coverage you need before the home purchase goes through.
Looking for a Home in Northeast Florida?
Buying a house is a significant investment, and you’ll need to obtain several essential documents before the sale can be finalized. These documents include a credit check, pre-approval letter, bank statements and tax returns, home inspection, title search, purchase agreement, and insurance.
Of course, if all that sounds a little too complicated, why not work with a dedicated team of real estate agents who understand the process, inside and out? Here at the Welch Team, we specialize in helping individuals and families in Northeast Florida find the homes of their dreams. Contact us today to learn more!
And while you’re here, be sure to grab a copy of our free buying guide. It contains industry tips and tricks, a walkthrough of the home-buying process, and a list of our most trusted vendors.