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Tips Home Buyers
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You'll have to have some money for a down payment, closing costs, moving, and misc expenses to buy your home.
Put off large vacations and luxury purchases until after you've moved into your new home.
Know your credit score
A low credit score will make you a bigger risk in lender eyes which results in higher interest rates and a
larger monthly mortgage payment. Make a point of paying credit card bills, car loans, and other payments on time.
Don't apply for any new credit for at least 6 months before getting pre-approved as new credit lowers your score.
Also pay down your credit card balances but keep the cards open, this will help raise your score and lower your
interest rate on your new home.
Get the financing approval process started as soon as possible.
Get pre-approved so that you have an idea of how much of a purchase price you can afford. This also shows owners that
you are a serious buyer. This also lets you determine what other paperwork you may need to start digging for to get the
final loan approval so your home will close on time.
Look at various mortgage options available
FHA, VA (if you are a veteran), and state-backed or community loan programs which require smaller down payments and
are easier to qualify for.
Look atTax implications
Home mortgage interest and property taxes are usually deductible from your federal income taxes. While your monthly
house payment may go up, you may receive a larger refund from Uncle Sam as a result. You really should speak with
a tax professional.
Gifts and Grants
Many buyers receive gifts from relatives and friends, additionally some companies offer grants and other incentives
to employees who are buying homes. Local community groups may have programs and financing plans for buyers
(especially first time buyers).
Location, Location, Location
Look at your home location needs, where do various members work? What are the schools like? What types of recreation
do you enjoy? How important is commuting time to and from work? Are there other location factors that are important?
Take all of these into account when looking at neighborhoods.
Know the Real Estate Agents/Brokers role
Real estate agents and brokers are at the involved in most all property transactions. It's important to know what a
agent/broker does, who they are working for and how they are getting paid (usually be the seller).
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