1. Get Pre-Approved
Talk to your mortgage professional about how much home you can afford and get pre-approved before you start looking. If you find a house you’re crazy about, you can make an offer knowing exactly how much you can reasonably afford to pay each month on your mortgage.
2. Keep Your Credit Clean
Run a credit check on yourself and contact any creditors who haven’t updated your record in terms of canceled cards, balances that have been paid off, etc. Pay off outstanding high interest credit as soon as possible to make it easier to obtain approval for a mortgage.
3. Determine Your Priorities
Make a list of what you want, need and don’t want in a home. Give a copy to your Realtor. If certain home types are definitely not for you, let your Realtor know. It will save both of you invaluable time and effort.
4. Check Out the Neighborhood
Familiarize yourself with the schools, property taxes, and other neighbourhood features. You’re getting more than just a home,, you’re buying the whole neighborhood package. Also review any covenants or homeowner’s association agreements thoroughly.
5. Consider Your Future Needs
As you look around the house, determine if it has adequate space for you and your family both now and in the future.
6. Keep Your Eyes Open
When you’re looking at a home, pay close attention to anything that might appear out of place, such as furniture awkwardly arranged to hide holes or stains in the carpeting. Turn on lights and appliances to see if you notice any irregularities in the wiring. Ask the seller when the roof, water heater and furnace were last replaced.
7. Write Out the Details
When you do make an offer, be sure to include everything you want from the seller, such as home inspection contingencies, items included with the sale of the house and any concessions you’d like the seller to make. Put everything in writing. Don’t trust any verbal agreements.
8. Get the Best Deal
Don’t be afraid to negotiate. This is especially true in a buyer’s market or when the seller is motivated to sell. Don’t worry if your first offer is rejected. You may have to offer more money the second time around, but at the same time you can ask for additional repairs. The offer you sign is a legally binding contract!
9. Get An Inspection
Have an inspection done to protect yourself. Skipping it could cost you several thousand dollars in the end so don’t skimp to save a couple hundred now. After you have the inspection done, read the report carefully and ask about anything you don’t understand. Follow the inspector as he/she performs the inspection. Ask any questions you may have.
10. Closing Costs and Considerations
Go over your closing costs before you close and ask any questions that may arise. You need to include these in your budget. They’ll include your first mortgage payment, property tax payments, legal fees, appraisal fees, mortgage application fee and any other fees. Your mortgage professional will provide you with written good faith estimate of closing costs. They will be happy to explain anything that is unclear to you at the time.
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