2. Pre-approved for a loan versus pre-qualified
By being pre-approved, you will know exactly what price range to search in. Don’t just get pre-qualified, pre-approval goes a step further by having your lender evaluate your application and clear you for a loan. Also, sellers will take your offer more seriously and you’ll have an edge over buyers that are not pre-approved. Additional Financing information->>

Financing -- There are various types of loans and it can be confusing. The down payment amount varies depending on the value of your home and the type loan that you have. Some loans require no money down. Request an estimate of your closing costs, which are normally between 3%-5% of your loan amount. Inquire about prepayment penalties and make sure you get everything in writing.

*** IMPORTANT
Prior to buying a home do not buy new cars, open new credit cards or purchase any high cost items. This will upset or unsettle your debt ratio and can make getting a mortgage very difficult.

3. Looking at Homes
Be objective and look at an assortment of homes that meet your criteria. When viewing a home, list the positive and negatives of the home. Visit the home at various times of the day to monitor the light as well as the neighborhood. Check the traffic especially at rush hour or the times of day that you will be going/coming from work. Try to realistically estimate how well you and your possessions will fit and function in the home.

4. Home Inspection
A professional home inspector surveys the home for possible structural damages, roof, exterior, heating, air, plumbing and appliances that will remain with the home. It is important for you to be at the inspection so that you will see exactly what problems the inspector identifies. An inspection usually takes 2-4 hours and costs between $250- $450 dollars, but it is a critically important element to help understand the investment you are making.

6. Homeowners Insurance
Protecting your home with insurance will protect you from any unexpected events that may occur. The homeowner’s policy not only protects your home and the possessions in it; it also provides you with liability coverage.

7. Closing
All of the details of your purchase from termite bonds to finance details are part of the legal proceeding of the closing. You’re signing a binding, legal document so make certain that you understand the conditions of the sale, the loan obligations and any ancillary rights or requirements of your property purchase.

First Time Buyer's Information
Mortgage Calculator