You’ve saved your money and are ready to purchase a new home. Here are some things you need to do before you make your purchase.
If you want to get the best deal, you have to compare rates from multiple lenders. Be sure to have them give you the details over the life of the loan so you can make equal comparisons. Some may have options to pay a fee called “points” in order to get a slightly lower interest rate. Depending on the length of time you plan to stay in that home, it may be a good idea. It is estimated that overall, people can save around $3000 if they shop around for the best deal.
Once you’ve selected a mortgage lender you should get preapproved so you will have the best chance of your offer being accepted. The process involves a credit check and proof of income. You will likely have to produce at least the most recent year’s tax return, as well. Preapproval means you have been vetted by the financial institution to borrow the money. Sellers like that reassurance and are more likely to sell to you than to a party that has not been preapproved.
Figure out what you want in a home and be sure your agent understands so he or she can better help you. The size of the home, the layout and even the neighborhood are important. You will likely look at several before you find the one that fits you and can put an offer on it. Make sure your offer is contingent on an inspection of everything. For instance, if there is secondary water, you may want to ask if the homeowner has ever had to hire a professional with a valve turner to open a tight valve.
Purchasing a home is an exciting adventure. The more prepared you are, the easier it will be. Check rates and get preapproved to have the best chance to have your bid accepted.