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Tips on Buying a Home
If you're thinking about buying a home, you'll want to carefully choose the real estate agent you will be working with during the process.
You should commit yourself to working with one agent who can learn your likes and dislikes in homes to make your home-buying process easier. Choosing a professional who specializes in residential real estate and one who has specific knowledge of your local real estate market.
The person you choose should listen to you and be interested enough in you to find out about your housing needs and preferences. Service first should be the motto of the professional you choose with services going above and beyond what you expect and need. Doing some homework before you begin your home search will make the entire process more manageable and less overwhelming. As part of your initial game plan, you should:
Check out: Things Buyers Should Know when Dealing with a Real Estate Agent
Check your credit rating
Even if you're sure you have excellent credit, it's wise to double-check. Correcting any errors or disputed items now, will avoid troublesome delays down the road when you're awaiting for mortgage approval.
You may see disputed items, in addition to errors caused by a faulty social security number, names similar to yours, or court ordered judgments paid off that hasn't been cleared from the public records. If such items appear, writing a letter or filling out a dispute form for the appropriate credit bureau normally will correct the issue. Credit bureaus are required to help you straighten things out in a reasonable time, usually 30 days, they will contact the creditor to verify the information. If the creditor does not responded in 30 days, the item will be deleted from your report.
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TIP: Make sure that any outdated derogatory entries are deleted from your credit file. Adverse credit information is not supposed to be reported or included on your credit report after seven years (except bankruptcy information, which can be reported up to 10 years).
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TIP: Officially cancel inactive credit cards. If you have an inactive credit card with a $5,000 limit, even though you owe nothing on it, some mortgage lenders will consider that a potential future debt. Too many inactive credit cards could affecting your rate or keep you from obtaining a mortgage. Don't just cut up your extra cards; officially cancel them and do it now so there will be time for the credit bureaus to update.
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TIP: Wait until after closing to make any major purchases while you're waiting for your closing. Monthly payments you're obligated to pay will be counted against you and reduce the amount of the mortgage loan you will receive. Even if you have been pre-approved for a mortgage, that approval is subject to last-minute evaluation of your financial situation. A spending spree for appliances, furniture and other goodies intended for your new home may wreck your chances for buying it. And they will check!
FREE Credit Report. The FACT Act required that the national credit reporting companies establish a Central Source through which you will request the statutory free annual credit file disclosures. You may contact the Central Source by visiting
www.AnnualCreditReport.com
or calling (877) FACTACT. You may make a request online, by telephone, or in writing for a FREE copy of your credit report.
Pre-qualification and Pre-Approvals
A real estate agent can help pre-qual you for a mortgage before you start house hunting. This process includes analyzing your income, assets and debt to estimate what you may be able to afford on a home purchase. Mortgage brokers or lender's mortgage counselors can also calculate the same sort of informal estimate for you. (Not Recommended)
Obtaining a pre-approval is another thing entirely. The lender will verify your income, assets and debts, giving you a clear understanding of what you came afford. Pre-approval makes you a stronger buyer, most sellers will require you to have a pre-approval before they accept your offer and remove the property from the market. (Recommended)
Most lenders will not charge you an application fees to cover the lender's work in verifying your employment, income, assets, debts and credit rating up front, but they will at closing. If you later decide not to use that particular lender you might receive a bill, so be aware, ask up front.
Pre-approval will also speed up the entire mortgage procedure once you've found the house you want. The only remaining question will be whether the house will "appraise" for enough to cover the loan.
Become an educated buyer with MLS Property Finder:
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The web is one of the best ways to search for homes today. With my website, you can receive daily emails with new, updated and sold listings from the towns and price range you chose.
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Search the entire MA & NH MLS for all homes, condos, land, multi family, commercial properties, and past solds at your convenience.
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View full listing sheets showing amenities, taxes, lot sizes, beds, baths, rooms, siding, fireplaces, garages, room sizes and much more.
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Get property address and see where the properties are located.
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Check schools and community profiles for your preferred towns.
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Save preferred listings in your own file to view anytime.
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Calculate approximate mortgage payments for specific properties.
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Click here to sign up now
Home Inspection
Once you have made an offer on a home, you will need to schedule a home inspection, conducted by an independent authorized home inspector, of your choice. It is extremely important to hire a reputable inspector so that you know exactly what you are buying. Do not hesitate to ask friends, family, co-workers and your buyer's agent for advice. If you are satisfied with the results of the inspection, then you can proceed to the Purchase and Sales agreement (or in NH, to mortgage commitment). If the inspector finds problems with the property, you may want to negotiate with the seller to lower the price or to complete repairs.
Check out: Board of Registration of Home Inspectors
Appraisal
Your lender will require you to get an appraisal of the house you want to buy, to make sure it will cover the loan. Normally the appraisal fee will be paid at closing, but there are times you will have to pay up front, your lender will tell you.
Home owner's Insurance
Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs. This will need to be done in order to close.
Closing
Be sure to read everything before you sign! You should have both your buyer's agent and attorney present at the closing to ensure everything goes smoothly.
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