This is it. You are ready to start searching for your dream home. Do not let that excitement make you forget about the key things that you need to consider when buying a home. This is one of the biggest investments you will ever make so you have to be certain with your choices.
A Useful Checklist for Homebuyers
The things listed below are just some of the guidelines that you may want to consider.
1. Money Matters: The lender will base their assumptions on the amount you qualify for, not on the amount you are comfortable spending. Don't wait for the lender to find out how much you can afford. Do your homework. Consider how much you are willing to spend. Remember, this is a lifestyle decision. Think about other expenses such as travel, education, and maintenance reserves.
When you are contemplating how much of a loan you can afford, make provisions for insurance, taxes, homeowner association dues and other unanticipated costs you may incur.
The best strategy is to actually calculate the taxes and other expenses rather than "ballparking". Avoid surprises. Your real estate agent will help you find the property that fits the price you are willing to pay.
2. Your Realtor® is there to help. Ask about:
3. Check your credit. Request a copy of your credit report as soon as possible and look out for:
Make sure you have time to prepare before a lender previews your credit history. Allow at least a week to close dormant or unwanted accounts and clear up discrepancies. According to the US Public Research Interest Group (PIRG), 79% of credit reports contain serious errors or mistakes. Make sure you are in the 21% that does not have the errors!
4. Gather and organize valuable documents. Accumulate all the necessary information you will need when you file your loan application. Ask your real estate agent or mortgage lender for a complete checklist so that you are fully prepared. Some of these documents include:
5. Get pre-approved, not pre-qualified! Pre-approval gives you the security of shopping for a home that you can honestly afford.
7. Avoid pre-mortgage pitfalls. Do not do anything that can negatively impact your ability to qualify for a mortgage loan. Until the time your loan closes, avoid:
8. Build your "need to have" and "nice to have" list. Every buyer have their "perfect" home in mind, but let's face it, you are not going to get everything. It's good to have a list of two things. One side will have all the things that the home must definitely have or what we call the decision-making factors and the other side will have the bonuses.
For more information please call Karen Lindsey (805) 469-8262