Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

Blog                                                             

Home buyer tips

Posted by James Trammell on January 27, 2011 at 10:13 PM

7 Steps to Take Before You Buy a Home

By: G. M. Filisko

 

By doing your homework before you buy, you’ll feel more content about your new home.

 

1. Decide how much home you can afford

Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

 

2. Develop your home wish list

Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

 

3. Select where you want to live

Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

 

4. Start saving

Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

 

5. Ask about all the costs before you sign

A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

 

6. Get your credit in order

A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

 

7. Get prequalified

Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate.

 

Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

Already a member? Sign In

292 Comments

Reply Wimbic
5:02 PM on December 6, 2022 
best lexapro generic
Reply Ashbic
12:52 AM on December 6, 2022 
seroquel liquid
Reply DavisKeW
10:18 PM on December 5, 2022 
generic viagra 100mg price in india
Reply EdgarZes
7:02 AM on December 4, 2022 
glucophage generic over the counter
Reply Sambic
7:25 AM on December 3, 2022 
atarax uk pharmacy nolvadex pill fluoxetine 20mg capsules price azithromycin zithromax clonidine 135 bupropion 141 buy 250 mg amoxil online pharmacy drugs
Reply Paulbic
11:35 PM on December 2, 2022 
2020 citalopram
Reply EdgarZes
1:39 PM on December 2, 2022 
kamagra 100mg oral jelly for women use
Reply kyrie 7
9:49 PM on November 30, 2022 
An fascinating discussion is price comment. I believe that you need to write more on this subject, it won't be a taboo subject but generally individuals are not sufficient to speak on such topics. To the next. Cheers
kyrie 7 http://www.kyrie7shoes.us
Reply EstebanCic
11:32 AM on November 30, 2022 
purchase sildenafil 100 mg
Reply Charlesnic
10:36 AM on November 30, 2022 
cialis for sale online in canada
Reply Boobic
12:30 PM on November 29, 2022 
celebrex 200mg capsules price
Reply supreme hoodie
12:40 AM on November 29, 2022 
An impressive share, I simply given this onto a colleague who was doing just a little analysis on this. And he actually purchased me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to debate this, I really feel strongly about it and love reading more on this topic. If potential, as you grow to be expertise, would you thoughts updating your weblog with more details? It is extremely helpful for me. Large thumb up for this weblog post!
supreme hoodie http://www.supremes-clothing.com
Reply Paulbic
4:41 PM on November 28, 2022 
bactrim forte medicine bactrim antibiotic
Reply vamadisz
2:13 AM on November 28, 2022 
nike 354 zoom eye beanie north face gotham ii parka polo manches longues homme armand thiery long sleeve drawstring top islanders devils stream
vamadisz http://www.vamadisz.com/
Reply quecarajoes
11:27 PM on November 26, 2022 
michael kors polly crossbody infinity bangle pandora strawberry outfit aesthetic barcelona away shirt michael kors carmen extra small pouchette womens sierra down corduroy parka
quecarajoes http://www.quecarajoes.com/
Reply veskopetrov
4:41 PM on November 26, 2022 
green spurs jersey faroe islands soccer jersey adidas ozweego bunny raf simons core black grey low jordan 1 the north face summit series l6 pink versace sneakers
veskopetrov http://www.veskopetrov.com/
Reply frisurenklub
3:12 PM on November 26, 2022 
affordable nfl jerseys for cheap elite customized youth jersey san diego chargers alternate electric blue nfl summer dresses amazon limited donta hightower mens jersey new england patriots super bowl xlix 54 alternate red nfl coach purse and matching wallet princess bracelet pandora
frisurenklub http://www.frisurenklub.com/
Reply Miabic
5:45 AM on November 25, 2022 
arimidex hair loss
Reply ecovinowines
2:51 PM on November 24, 2022 
skinny fit big pony polo shirt
ecovinowines http://www.ecovinowines.net/
Reply Boobic
1:35 PM on November 24, 2022 
propecia 5mg online