Searching for a new home can be one of the most exciting and stressful times during a person’s life. The financial commitment can be the portion of the decision that puts the most stress on someone. Another factor is that of being worried that you are going to pick the wrong house and end up unhappy. Organization is a huge part of buying a home as the mortgage application process although you are using a broker will still be a bit of a nightmare. There will be last second forms to send in and things that were supposed to be emailed that were not. Excel is the perfect way to organize your home search in the following ways.
Pros and Cons
Listing out your pros and cons on a piece of paper is way too old school. You might want to add to the list or find out a pro of one house is actually a con due to the electricity or water that it uses. Using Excel to sort all of these out will give you the ability to grade homes based on concrete data. You and your significant other can score each portion of a home in order to get a final score. Just having a feeling about a house is nice until you are living in it for 6 months then find yourself wishing you had bought the home with the pool. You would be surprised to see the differences in opinion between your significant other and yourself. You can also show the realtor these scores so they can get a better idea of what you are looking for in a home.
Realistic Budgeting
The best function of Excel when looking to buy a home is that of putting together a budget. The mortgage company maximum loan amount should not even be in your ballpark as far as budget. Take the time to sit down and budget all of the things that have to do with the home. You can get the average bills in the area or from the homeowner themselves to get accurate estimates. You will find you might need to choose a more budget friendly home if you want to have any type of social life at all.
Taxes In That Area
The property taxes and other taxes can change immensely from state to state or city to city. For example if you are going to buy a home in New Jersey then work in New York City then taxes are going to be a huge issue. You are going to have to pay the NJ state tax, the NYC tax, and the New York State tax. Take these things into consideration before you make a huge move especially if it is to another state. Electricity in extremely hot or cold climates can also cost nearly as much as a mortgage payment if you need to be super cold or extra warm.
As you can see Excel will help you organize your finances. You can also put together a checklist on Excel of paperwork that you will need as well as the dates that they are due by. Do not let an unorganized mortgage broker stress you out, handle what you can through being as prepared as possible.
