1. Review
your credit report. It is important to check your credit
report for errors before jumping into the housing search. Consumers are allowed
one free report per year at www.annualcreditreport.com. Because it can
sometimes take a while to clear up errors on your credit report, it’s a
good idea to look at your credit history several months in advance of beginning
your housing search.
2. Get
approved for a mortgage. Try to get
offers from several mortgage lenders before choosing one. This way, you can see
what your price range will be before starting your search, and won’t waste time
and energy looking at homes that you can’t afford.
3. Hire a
realtor. Realtors have inside connections in
the local market, and often know of homes that are available that might not be
listed publicly. Additionally, a realtor knows the tricks to brokering a deal,
which can save homebuyers lots of money and aggravation.
4. Decide
where you want to live and examine your choices. Search the internet for homes that catch your interest.
Avoid listings that don’t provide a picture, as this usually indicates that the
property is not visually appealing.
5. Compare
prices. Compare the prices of the homes that
you are looking at with others that are similar and have sold in the last 60
days. This way, you can make sure that the property that you are looking at is
listed at a fair price.
6. Perform an
inspection. This is an important step in
ensuring that the home that you are looking at is safe and does not need any
renovations. If you are making an offer, it is a good idea to make it
contingent on an acceptable home inspection. If the inspection uncovers areas
that need improvements in the home, this can be used as a leverage by the buyer
at closing time.
7. Talk about
closing costs ahead of time.
By law, prospective homebuyers are permitted to see the closing costs, which
typically average from 1.5 to 4 percent of the purchase price. Ask to do so
ahead of time so that you have the chance to dispute costs that seem unfair or
inappropriate.
8. Make an
offer. Consult your realtor before making
an offer. Try to be as flexible as possible with the sellers. Homebuyers who
are agreeable and willing to make minor concessions are more attractive to
sellers.
9. Decide on
a down payment. Most experts recommend making a
down payment of about 20% of the total cost of the home. Not only does this
provide you with immediate equity, but it also gives you a lower interest
rate on your mortgage. Finally, it makes you appear to be a serious, qualified
buyer, which is important if you are competing with other buyers for the
property.
10. Claim tax benefits. There are several closing costs that are tax deductible.
For example, the pro-rated interest from the time you close on the home until
the end of the first month and any mortgage points that are paid can be
deducted from your taxes. Talk to the
person who helps you prepare your taxes to find out more about tax
deductible closing costs.
We wish you luck with your quest to find a new home. We hope
that you will use Sorensen Mayflower when it comes time for you to move into
it!
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