If you are considering the purchase of your very first home -
do your homework first and the process will be that much easier and enjoyable.
Before you start looking:
Make a list of the Items you absolutely must have in a home = NEEDS
For Example: Square Footage, Number of Bed and Bathrooms, Garage, Handicap Access, Lot Size.
Then make a second List of Items you would like to have = WANTS
For Example: Certain type of flooring (Wood, Carpet, Tile), Bay Window, Views, Skylights.
Have each Family Member make his or her own list – then compare!
Do you need to know about Credit Rating?
When you apply for a mortgage to purchase a home, lenders will review your credit report. Your credit report is a history of how you’ve managed your finances: it’s a record of money you’ve borrowed and your history of paying it back.
Your credit report is a record of all your credit transactions whenever and wherever you’ve used credit to purchase goods and services. Your credit will have a big influence on whether or not you can get a mortgage, the terms of that loan, and the interest rate. If you have good credit, you may have a much wider range of mortgage offers with lower rates.
If you need to establish your Credit Rating:
Pay your Bills On Time
Pay AT LEAST the miniumum Amount required
Try to keep your Credit Card Balances LOW
Do NOT apply for too many new Accounts and/or Loans
Establish your credit – if you have not already done so.
For Example: Open a free or low cost checking account and make regular deposits, apply for a credit card and pay it off monthly.
Should you work with an Agent?
Since the commission for the sale of a house is almost always paid for by the seller, buyers are able to get assistance and information from Real Estate Agents, usually at no cost to them. It is for this reason that the vast majority of home buyers employ the services of an Agent for their purchase. In addition, since most houses are listed by Real Estate Agencies, it gives them the maximum number of available properties to consider.The relationship between a home buyer and a their Agent is a little like a marriage: it must be based on trust, mutual goals (to get you the house that best suits your needs!) and understanding. To a large degree, the home buyer entrusts the Agent to always keep their (the buyer’s) interest first and foremost. It is important that you understand who the Agent with whom you are working represents.
