1. Don’t forget about the closing costs – Traditionally, about 3-4% additional percent from all of your other purchasing costs, will be the amount of your closing cost. This is not included in the down payment! Make sure to have the additional money for the closing costs when you go to close on the house. This is something that you can talk to your realtor about before closing so you have a better idea of what will be expected.
2. Know your credit score – Knowing your credit rating is crucial in order to give yourself time to fix mistakes you may have made in the past, before you apply for a mortgage – a crucial part in the house buying process!
3. Location, Location, Location – For many home buyers, it is easy to fall in love with a home with charm, no matter how “down” the surrounding area may be. However, it is highly recommended to take the neighborhood and area around the home into consideration. In the long run, a house will have more value if located in better surroundings – no matter how it may look.
4. Get pre-approved – Before you even start searching for homes, make sure that you have the finances to make this life changing purchase by getting qualified with your bank. Not only will this give you a better ballpark on how much you can be willing to spend and what your budget is, but it will also give you a leg up on the competition when it comes time to bid. A buyer who has guaranteed money in his pocket for a sale, will have a much better chance at winning the bidding war.