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1. PLAN AHEAD
Before you're ready to buy a home, you'll need money for a
down payment and closing costs, and you'll have to qualify
for a mortgage loan. So, save up, and establish good credit.
2. KNOW WHAT YOU CAN AFFORD AND STICK
TO A BUDGET
Don't set your sights too high and look at homes you can't
afford. You may not be able to afford your dream home right
now. Read How Much House Can You Afford? And use our calculator
to help you determine your price range.
3. GIVE YOURSELF TIME
This is a big decision, and you don't want to overlook anything
important. Think carefully about what you need and want in
a home.
- How long will you live there?
- Is your family growing?
- Will you be able to sell it when you want to?
- Do you like the neighborhood?
- How about the schools?
Make sure you're satisfied with all aspects of the home you
will live in. And, then, don't be afraid to make a commitment.
4. MAKE A CAREFULLY CONSIDERED OFFER
Don't offer too much. Before you make an offer on the house
you want to buy, have your real estate agent prepare a comparative
market analysis showing recent sale prices of similar homes
in the area. Make sure you include any necessary contingencies
(like mortgage financing, inspections, repairs, or sale of
your home) in your offer. And don't be afraid to negotiate.
5. CHOOSE YOUR MORTGAGE (AND YOUR
LENDER) CAREFULLY
Know all your options! And find out what different lenders
can offer you. Read What Mortgage Loan is Right for You? And
have your lender show you your options on paper.
6. CONSULT WITH YOUR LENDER ABOUT
PAYING OFF BILLS
Don't assume that doing so would help you qualify for a mortgage.
You may need to, but the cash you have might serve you better.
7. DON'T CHANGE JOBS
Stable employment history will help you qualify for a loan.
A lender will look unfavorably on a cut in pay. And, during
the loan process, verification of income from a new job can
create delays.
8. DON'T MOVE MONEY AROUND
New homes accounts will complicate the loan application process,
since a lender has to verify all your sources of funds, and
will want to know that you have had that money for several
months.
9. DON'T INCREASE YOUR DEBT
Don't make any major purchases, like a car or furniture for
the new house. If these purchases increase your debt load,
you might be prevented from qualifying for a mortgage loan.
10. TIME YOUR MOVE WELL
If you are selling your previous home, do you need to close
on that sale before your purchase closes? If you are renting,
make sure your move coincides with the end of your lease.
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