Buying a Home in Southern Wisconsin?

First things first and most importantly, responsibly calculate how much money you can spend.

Set Your Budget: Determine your budget using the 28/36 rule, which advises spending no more than 28% of your monthly income on housing expenses and 36% on all debts combined. If you earn $4,000 a month, your housing costs shouldn't exceed $1,120 and your total debt shouldn't surpass $1,440.

1. Save for Down Payment: Traditionally, aim for a 20% down payment to avoid private mortgage insurance (PMI). However, options like VA and FHA loans require 0–3.5% down. Explore state-specific and nationwide programs for first-time buyers, and consider down payment assistance programs if needed.
2. Budget for Moving Expenses: Don't forget moving costs when budgeting, including movers, truck rentals, and temporary accommodations. Plan your move wisely, especially in colder climates where winter moves might be challenging.
3. Find a Realtor: Partner with an experienced real estate agent who knows the market. Look for agents with good community knowledge and ask questions before making a decision. Use Clever Real Estate's agent-matching service for hassle-free connections.
4. Get Preapproved for a Mortgage: Secure a preapproval to determine your budget accurately and demonstrate your seriousness as a buyer. Prepare necessary documents like ID, employment info, and proof of income.
5. Start the Home Search: Prioritize locations based on factors like crime rates, proximity to amenities, school districts, and future home value trends. Take advantage of online resources and explore neighborhoods firsthand. Begin searching for homes online, attending open houses, and scheduling private tours. Keep an open mind and consult your agent for off-market opportunities.
6. Draft and Submit an Offer: Craft a competitive offer considering offer amount, seller concessions, contingencies, and repair credits. Seek guidance from your agent throughout the negotiation process.
7. Negotiate with the Seller: Be prepared to negotiate based on the seller's response. Consider adjusting your offer amount, contingencies, or concessions to reach a favorable agreement.
8. Complete Appraisal, Inspection, and Title Search: Conduct necessary evaluations to ensure the home's value, identify any issues, and confirm the property's title status. Work with trusted professionals and address any concerns before closing.
9. Do a Final Walkthrough: Prior to closing, conduct a final walkthrough to ensure all agreed-upon repairs are completed satisfactorily. Communicate any remaining issues with the seller and finalize arrangements.
10. Close on Your Home: Prepare for closing by transferring necessary funds and signing legal documents. Plan ahead to avoid closing on a Friday and consider hiring a real estate attorney for added assurance.

Know Your Closing Costs: Understand average closing costs, which typically range from 1.5 - 4% of the loan amount, excluding the down payment. Account for lender fees, title and escrow charges, prepaid costs, and other miscellaneous expenses.

With sPlan Realty's expert guidance and support, navigate the home buying process confidently and achieve your homeownership goals.