This is our first video of our February topic the Home Buyer’s Checklist, things you need to do before buying a home. Below is the full Home Buyer’s Checklist. Today we discuss the first two bullet points: Credit Reports and paying down current consumer debt. If you want me to talk about a certain topic in the future please email us.
Home Buyer Checklist
- Get a copy of your credit report and correct any errors
- Reduce your consumer debt - pay down credit card balances.
- Pay off the debt with the highest interest rate first.
- Determine how much you can afford to pay for a home. Decide how much you are willing to spend for a home.
- Can you afford the down payment (FHA 3.5%, conventional 5-20%)? Don’t forget closing costs, moving costs, and having a small cash reserve for emergencies.
- Get familiar with basic mortgage terms
- Shop around local and national banks for best rates and programs.
- Get pre-qualified for a mortgage loan
- Research neighborhoods that you want to a house (drive & online)
- Location, schools, crime, etc.
- Interview real estate agents who specialize in the neighborhoods where you want to buy a house
- Get pre-approved for a mortgage loan
- Visit homes and make notes/pictures
- Once you find a house you like, have your real estate agent determine the price you should offer. Look at comparable houses the sold in the last 6 months.
- Compare square footage, lot size, bedrooms, baths, garage, basement, condition of the home, etc.
- If your house is dated you should offer less than a newer renovated home.
- Have real estate agent write the offer
- Complete all mortgage loan application requirements
- Hire a home inspector to examine the house & be there for the inspection. You will learn a lot about the house.
- Get agreement on repairs to be made by the Seller
- Inspect repairs and handle other details prior to closing day (settlement).
- Hand over a certified check for the down payment and pick up the deed for your home.
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