tips for buyers

Tips for First Time Home Buyers:

• Be pre-qualified by a lender

• Obtain a mortgage pre-approval

• Have the necessary funds available to write an initial earnest money check

• Have the remaining money for your down payment easily accessible

• If you are receiving a “gift letter” for a portion of your down payment, be sure to have the money transferred into your savings account

• Pay balances on revolving credit cards

• Do not make big purchases (such as a car) prior to getting loan approval and closing on your new home

• Have a credit report run by a credit agency so that you can clear up any potential problems

• Find an attorney to review an “offer to purchase agreement”

• Be aware of the dates you can move on
  

Common Closing Costs:

• Down payment

• Loan origination fee and points

• Appraisal fee

• Credit report

• Flood letter



• Private Mortgage Insurance (PMI) premium

• Home Owners Insurance premium

• Mortgage Insurance escrow

• Home Owners Insurance escrow

• Property taxes escrow

• Closing fees

• Recording fees

• Mortgage title policy

• Owner’s title policy

• Mortgage interest adjustment

• Survey

• Termite inspection and building inspection fee

• Tax servicing fee

• Lender inspection fee

• Notary fees

• Federal Express (if needed)

Tips on What Not to Do for the Home Buyer:

• Don’t buy before comparison shopping…especially if you’re new to the area

• Don’t think all real estate agents and companies are created equal. Find an agent/company with a great track record and proven home buying system

• Don’t work with more than one agent. Find one you like and stick with him/her

• Don’t wait for the perfect time to buy. The best time to buy is when you have found the right home

• Don’t get too many people involved in your buying decision

• Don’t wait until you find a home to start looking for the best loan

• Don’t wait until after you find a home to be qualified for a loan