Are You Shopping for a New Home?

Are You Preparing for Homeownership?

2. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. There are opportunities to purchase with less money down but, you want to be certain that you're not getting in over your head by not putting much money down.  Don’t forget to factor in closing costs—including inspections, taxes, attorney’s fee, and transfer fees — which generally average between 2 and 7 percent of the purchase price of the home.

3. Have you developed a wish list of homes?  Once you've done that, prioritize the features on your list--what are the most crucial for you to have?

4. Where do you want to live? Which neighborhoods are more appealing to you?  Make a list of three or four neighborhoods in which you’d like to live keeping in mind criteria such as schools, recreational facilities, area expansion plans, and safety.  Read more buyer tips to homeownership as well as  an article regarding selecting your neighborhood.

5. Is your credit in order?  Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, any late payments and gives you a clear picture of your ability to negotiate a better interest on your new mortgage.

6. Are you qualified for a mortgage?  What size mortgage do you qualify for?  Explore different loan options — such as 30-year, 15-year fixed mortgages or ARMs.  Understand them ALL and decide which best suits your needs.

7. Are you preapproved?  Organize all the documentation a lender will need to preapprove you for a loan. You'll need W-2 forms, copies of at least one pay stub, account numbers for savings, checking and credit union accounts (with copies of two to four months of bank or credit union statements).

8. Do you have other sources of help with a down payment?  Do you qualify for any special mortgage or down payment assistance programs? Are you planning to use gift money for your down payment?  Check with your lender regarding down payment assistance programs for first-time buyers.  If you have an IRA account, you can use the money that you’ve saved to buy your fist home without paying a penalty for early withdrawal.

10. Have you contacted a REALTOR®?  Find an experienced, full-time REALTOR® who can help guide you through the entire process.

About the author:

Debe Maxwell is a Charlotte Residential Real Estate Broker, Certified Neighborhoor & Relocation Specialist, ABR & e-PRO who can assist you with the purchase and/or sale of real estate in the Charlotte NC Metro Area.  If you're relocating to or from any other area of the country, Debe connects you with any member of her team of relocation professionals in your destination or exit city of choice.  The destination service is of no cost to you!  The Maxwell House Group's quality service guarantee puts this team far ahead of the competition; providing unsurpassed customer service is their #1 priority!  Debe Maxwell -- Helen Adams Realty -- 704.491.3310