10 things you should know when buying a house

1. Get pre-approved for your mortgage. One of the very first things you should do when you are thinking about purchasing a home is to meet with a lender to get pre-approved. They will let you know what you can do to improve your credit score and debt to income ratios. There is nothing worse then finding the perfect home only to find out you can’t qualify for it.
2. Remember the extra money it will cost to own a home. When you are figuring out how much you can afford each month remember you’ll have to maintain your home as well as pay taxes, insurance, and if applicable HOA fees.
3. Define your search parameters. How many bedrooms and bathrooms do you need, how large of a lot, do you need a garage? With the internet you can search hundreds of homes in your area to make sure what you would like to buy is what you can afford to buy.  Depending on how much you can qualify for you may need to adjust your parameters.
4. Find a Realtor to represent you. A Realtor does more then just showing you homes. They will guide you though the process from finding the home to closing the deal. Your agent will help you know how the house is priced and what to offer. It is always your decision, but they will give you suggestions. They will make sure your offer and other paper work is done correctly and legally, and that you are completing everything within the contract dates. They will coordinate the closing between the selling agent, the title company, the lender, and you.
5. Don’t over negotiate. If you try to hard to get a killer deal you may loose the home you want to someone with a better offer. Your agent will help you know if what you’re offering is a “low ball” and what to expect as a response from the seller.
6. Get a professional home inspection.  Your lender will require you to get an appraisal, but that is only to make sure the home is worth what the bank is lending on it. Separately you should hire a professional home inspector. This should be someone familiar with the building codes in your area. His job is to point out potential problems that could require costly repairs in the future.
7. Remember that no home is perfect. Don’t let minor problems kill your deal. Every home, especially older ones will have a few repairs that will need to be made. Some can be repaired by the seller, some they will expect you to fix. Talk with your agent about your options.
8. Choose carefully between points and rates.  When choose a mortgage, you have the option of buying down points, a portion of the interest you pay at closing, in exchange for a lower interest rate. Many buyers only look at their rate and not what the rate will cost them. If you plan on selling or refinancing within 5 to 7 years you are better off with a little high rate and less closing costs. If you will be in the home without refinancing for longer you will save a lot of money by buying down the rate at closing. A honest lender will explain this to you and let you make the decision.
9. Choose a home you love and worry about appreciation later. Unless you are an investor you are buying a home to live in. Buy one you feel safe and comfortable in. Don’t get caught up in what it will be worth when you sell it. You don’t know what the market will be like, but overall real estate does appreciate.
10. Don’t ask for to many opinions. Although you may want to know what friends and family think about your new home, they won’t be living in it. Too many opinions can make the chose much harder. You can’t please everyone.    

 How I Can Help
Before you start looking
Closing Costs

As Your Agent, I Will:

• Assure that you see all the properties in the area that meet your criteria.
• Guide you through the entire home buying process, from finding homes to look at, to getting the best financing.
• Make sure you don't pay too much for your new home and help you avoid costly mistakes.
• Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.

Before You Start Looking For Your New Home:

• Check your credit rating. Straighten out any errors before its too late.
• Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
• Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
• Choose a REALTOR® that you trust and who understands your needs.
• Determine what neighborhood best matches your needs.
• Identify important features you need your new home to have.

Closing Costs to Expect:

• Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
• Third-party fees include charges for insurance, title search, and other inspections such as termites.
• Government fees include deed recording and state & local mortgage taxes.
• Escrow and interest fees include homeowner's insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.

Find out how much your closing costs could be.

Back to top...