Here are just some little things I found to be helpful, wish I knew, and maybe can help someone.
- Down payment. There is the 3.5%, 5%, 20%, etc. etc. So remember when you buy a home that is say $250k, you need $12.5 on a 5% loan for that. In cash.
- Credit. Get your credit score up to at least 640 if possible. over 725 would be much better but we all know people can have credit issues.
- Hidden costs, there are a ton that you need additional cash for during escrow. That $12.5k could easily be closer to $20k with title, insurance, taxes, inspection, appraisal, etc.
- Getting a mortgage. Shop around, honestly don't be lazy here. Smaller lending companies usually give better rates and are more flexible with credit than banks so try both. Look for incentives on closing costs, better rates, FHA vs conventional. Remember 0.5% on a 30 year loan adds up, a lot.
- The number the mortgage people give you will change. They might say $1500/month mortgage payment and after everything is all finalized and you are days from closing its now $1800. So always assume the payment amount will increase...
- Inspections and appraisals. Get a good inspector, someone who will go through everything. A good home inspection takes hours and cost a few hundred dollars but is worth it. You can also use the issues found to get credits or home repairs before you even close. Appraisals are pretty straight forward and usually set up by the lender.
- Walk through. Check out the house at an open house, get your realtor to show it to you again. Also pay attention to little details, main streets nearby, sun directions, lifting shingles, cracks in walls, overall maintenance of the house. Do a final walk through right before closing.
- Get the home warranty. There is nothing more frustrating than having to spend $1500 on a new fridge a week after moving in when the $500 home warranty + $50 service call would have fixed the problem.
- If you need to do renovations, get lots of quotes. Also prices are mostly negotiable for services so don't just accept the price stated is the price it will cost.
- If you are going to do renovations yourself, be careful and no matter how little the job, it will always be bigger and harder than you initially thought.
Additional tips I missed would be great.
Submitted January 08, 2019 at 04:15AM by NoceurMec http://bit.ly/2RhfZ0e
