Tips for Home Buyers

1. Be Sure You’re Ready To Commit To A Loan

The average mortgage loan term is 15 to 30 years. Although you don’t need to stay in your home for that long, buying a house is still a major commitment.

Be 100% sure that you’re ready for homeownership before taking on a mortgage.

Start by asking yourself these questions:

2. Maintain Your Credit

When you apply for mortgage preapproval, lenders will pull your credit report. They’ll do it again before you close on the house and its corresponding mortgage.

If they find that you’ve taken out another loan or line of credit, that your credit balance has increased, or that you’ve started to make late payments,

it could risk your final approval.


3. Make a plan for the down payment

Determine what you can afford. You can figure out how much you want to save for a down payment.

Though 20% down used to be the norm, many homeowners put down less.

Speak with your lender, they have many options to get you into that new home.

4. Create a wish list

Create a list of must-haves and nice-to-haves for the house you want to purchase.

Imagine living there for years to come, there are a lot of little details, but here are some bigger decisions you might want to make when making your list.

a) If your all about having a back yard, but want to move to a heavily populated area, yard space may be limited.

b) location: choose a neighborhood that meets what you want in a home. Example, close to shopping malls, schools, work etc.

c) Do you want a fixer upper or a move in ready home?

5. Understand Your Loan Options

a) Conventional loans: this is the most common type of home loan.

b) FHA loans: this type of loan can allow you to buy a home with less strict financial and score requirements.

c) VA loans: this loan is exclusively for veterans and members of the armed forces and qualified spouses. You can buy a home with 0% down if you

qualify for a VA loan.


6. Get preapproved for a mortgage

There are many mortgage lenders out there. Mortgage companies, banks, credit unions are a few. Working with a lender to get pre-approved for a mortgage is

an important step in accurately determining your budget. A pre-approval will give you real numbers, since the lender will have detailed info about your finances.

A pre-approval lettter shows sellers and real estate agents thta you are a serious buyer who can get financing and be a crucial edge over competing in the home buying process.

7. Don’t Forget Closing Costs

Don't assume that your down payment is all you need to close on your mortgage loan. Closing costs are upfront expenses that go to your lender

in exchange for arranging certain loan services.

8. Work With A Real Estate Agent

The right real estate agent can make a huge difference throughout the process of buing a house, from knowing the ins and outs of the local market to providing

support when negotiating with a seller. An agent can show you properties in your area that fit your needs and price range.

An agent can help you decide how much to offer'for a property.

The agent will also attend the closing with you to make sure everything is in order with your sale.

9. Make an offer

You found a home that is right for you. Now is the time to make an offer.

10. Get homeowners insurance

You will want to obtain home owner's insurance for your new home.

You will want enough coverage to fully replace the home and any assets.

12. Schedule a home inspection

you may or may not do a home inspection. This is up to you as an individual. An inspection can raise any issues that you may face down the road

and point out any necessary repairs. It is your responsibilty to obtain and pay for your home inspector.

13. Have the home appraised

The home appraisal is completely different than the home inspection. While the home is inspected for your peace of mind. The appraisal is for the lender.

The lender is concerened with how much the home is worth and the market value of the property.

14. Close on your new home

You made it to the last step! Closing on your new home. Your lender will provide you with closing figures for the closing. You may do a walk-through of the property.

It has been a whirlwind of emotion and endless paperwork but you did it!!!