Buyer's Guide

The best way to start is to figure out how much you can afford for a home. You can do this by getting pre-approved from your mortgage lender and also making a list of income/debts. Check your savings account and see if you already have enough for a down payment. They typically range from anywhere from 3% to 20% so set aside some time to save for this if you have to. Loan officers and insurance agents look at credit reports because your credit history is an important factor when it comes to obtaining a mortgage for the purchase of your home. They want to see how you borrowed and repaid money in the past. A credit score between 700-850 is where you would want to aim for. It’s smart to check your credit scores and see a full report so you can help get yourself to a good standing before applying.

Now that you know how much you can afford and have found the perfect real estate agent, it’s time to start looking at houses. No house is perfect but keep in mind that the home you purchase should meet as many of your needs as possible. Consider making a list and bringing it with you when you go to showings, this way it can help you visualize. Other priorities to consider are the neighborhoods, how many bedrooms and bathrooms, location and lifestyle, and commuting distance.

Choosing the type of house can narrow down what you’re looking for. Be mindful of your plans for the coming years because you want to make a good investment. Schedule appointments with your real estate agent to go see open houses. Don’t be afraid to ask questions!

Mortgages are an important step when buying a house. A mortgage is basically a pledge of your property as security for payment of your home loan. It’s paid in monthly increments and made up of four parts:

Principal: the amount on your loan apart from interest
Interest: paid in monthly increments for the life of your loan
Taxes: monthly property tax payment
Insurance: homeowners insurance that protects your property

As mentioned before, prequalifying can be an easy way to see how much you can borrow. Once all needed materials are given to your loan officer, he or she can give you an estimate.

There are different mortgage loans out there and it’s your job to choose the right one for you. Fixed rate mortgages have a fixed interest rate for the monthly payments but the principal and interest payments don’t change. Adjustable rate mortgages have interest rates that are periodically adjusted according to the type of ARM loan you have. There are advantages and disadvantages to each, but make sure you do thorough research before choosing.

You will get a good faith estimate of the closing costs and other expenses. Once the loan is approved, you will get a commitment letter that outlines all the details of the loan.

Before closing on the house, there are other things you and your lender should go over. A title search must be done to make sure there are no claims on the property and that the seller can provide marketable title. If there are claims, the seller typically would have to pay them off before the closing unless the contract states otherwise.

The lender will require title insurance to protect themselves if problems do arise with the title of the property. You will typically need to get homeowners insurance prior to closing and make sure that you have the receipt. If the property contains a septic tank, you may need a system certification done.

This is the moment you’ve been waiting for! Here are some things to keep in mind when getting ready to make the move:

You will need movers in place a couple of weeks before the move. And don’t forget to notify others of your move as well as forwarding your new address with the post office. A couple of weeks prior should also be a time to get rid of things you don’t really need by having a garage sale or donating them.

Begin packing items you don’t often use and store important documents in a safe place for the move so you don’t lose them. Take one last look around your home and make sure you didn’t forget anything. Everything should be empty and cleaned out for whoever moves in next.