Homes can be a worry to many consumers and high debt is causing twentysomes to worry about how they can afford a home on their own. But being prepared can cut down on headaches.
Many Americans are much younger than before, which are the fastest-growing group of homeowners. No matter what your financial backing is or your financial means are, your first home can be overwhelming. And because the medium home price has doubled in many cases in recent years, those living with parents or renting, has become increasingly harder.
Here are tips to think about and look for when buying a home:
Know your credit history
There are three major credit agencies in which your credit is reported to. One problem is that many creditors don't report to all three bureaus, sometimes just to two of them, or sometimes just one. Your lender that you choose will need to review your credit report and usually uses 2 to 3 scores to determine your credit worthiness.
Word of advice, be very careful of who you let pull your credit outside of a lender or bank. There are many companies that say free or charge a one-time flat fee. In my opinion, you are taking to many chances of others having your information out there. Go to the three major credit bureaus and have 1 of the 3 or all 3 pull your credit. And be extremely careful of these credit repair companies. Do your investigation before hand. For the most part, many good lenders already know what to tell you or help you with your credit.
Here are the 3 credit bureaus:
Equifax Personal Solutions: Credit Reports, Credit Scores ...
Experian: Free Credit Report and Credit Score, Credit Check ...
TransUnion - Credit Score Information & Online Credit
George Souto wrote a very good post on opting out, from other lenders selling their information to the public. 1st Time Homebuyers.........What You Need To Do First!!!
Finding a reputable sales agent & mortgage lender
As weird as this may sound, if you are reading this, you might want to check out ActiveRain Real Estate Network. There are 100's to 1000's of very good and qualified real estate agents and lenders on this site. You want to rely on these real estate agents because they would know the area very well, the school districts, the prices of recently sold homes, and possibly the development plans of new housing areas. You can also search the internet or possibly get a referral from a trusted friend, relative, or co-worker.
In regards to a lender, you will want to find them the same way. But you want to take the advice of someone that will spend more than 10 minutes on the phone with you. Someone willing to find out your goals and not just give you what you want. Here is a good post that I wrote over a month ago: Shoppers that shop themselves right out of the market....... PART 1 & here is a quote of mine. "Have you done your homework yet? Stop shopping the rate and shop for that loan officer that will help you build wealth." This is just something to think about when talking to a lender or bank.
Get a home inspection
Usually your realtor can help you with this and or give you recommendations. The inspection will provide you information on the condition of the home. If there is anything wrong with the electrical, heating, air-conditioning, the foundation, the roof, and any other key components. They will also look for termite damage or you can get an inspection from a certified termite company. And never hesitate to get a home inspection on new construction, just because it's new.
Title insurance and homeowner's insurance
Again, you can usually get referrals or recommendations from your realtor or loan officer. But never let anyone talk you out of getting it on your own. You, as the client, have the right to choose who you want and can use. Here is a great post on what to look for in regards to homeowners insurance: By Michelle Sotelo 5 Things to Understand About Homeowners Insurance
Summary
My best advice is do your homework. Don't always go with the person that offers your the best rate and lowest fees. Or uses the word "promise" and "don't worry" in every other sentence. The law of averages usually apply, meaning, if 9 companies are the same and 1 is much lower, use your gut. All lenders buy their money from the same places. This goes for most services. What you want to look for is great service, communication, feedback, good/timely follow up, and someone that you can reach often. And never be afraid to ask a question, no matter what. No question is a stupid question.......
Here are a few other posts that might be worth reading:
The Myths about ZERO point mortgages instead of paying points upfront...... by Jeff Belonger
What Homebuyers Dread: The Fear and the Fix. by Dan Deutsch
First Time Home Buyers - Don't over-leverage yourselves by Enrique Garcia & Ines Hegedus-Garcia
PS.... in regards to the picture.... you might need one of these before, during, and after...no matter how smooth the transaction might even be...or how well that you are prepared.
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Great Primer Jeff! I may use this in my buyer's guide with your permission of course :)
Congrats on your Eagles. I sure wish that they could have used Akers all season like they did today. They may have won more games if they did :(