- SAVE
• Down payment
• Closing costs
• Escrow for insurance and taxes - IMPROVE CREDIT SCORE
(Higher credit score = lower interest rate)
• Stay current on bills
• No major purchases
• Don’t cancel any credit cards - CALCULATE WHAT YOU CAN AFFORD
Affordability depends on income, credit rating, current monthly expenses, downpayment and interest rate. - GET MORTGAGE PRE-APPROVAL
• Shop for the best deal
• Choose primary and backup lenders - DECIDE WHAT YOU WOULD LIKE IN A HOME
- CHOOSE A REALTOR
- VISIT HOMES
• Take photos and make notes
• Make a home shopping checklist - NARROW YOUR CHOICES
• Visit neighborhood during the day and at night
• Test commute to gauge traffic, noise, etc.
• Consider resale value - MAKE AN OFFER
Common contingency opt-outs:
• if home appraises for less than mortgage
• if inspection reveals flaws owners won’t fix
• if you lose your job before the deal closes - SCHEDULE A HOME INSPECTION
- MAKE A FINAL WALK-THROUGH
• Test light switches and sockets
• Check that windows and doors work
• Test faucets, drains and toilets - CLOSE AND MOVE IN!
SOURCES: HUD.gov, Realtor.com, Bankrate.com