A Punch List for First-Time Home Buyers

1. Save, Save Save!

Cut down on extra expenses, and sock as much money away as possible.  You will need to be financially prepared to pay for the down payment, closing costs and escrow for insurance and taxes.

2. Become friends with your Credit Score!

The higher the credit score, the lower the interest rate, and that can make a huge difference on how much house you can afford.

While saving to buy a home, be sure not to cancel any credit cards.  The longer you have had lines of credit, the better for your credit score.

Do not make any major purchases.  Wait on that new car until after you get a mortgage.  Debt to income ratios also determine how much house you can afford, along with your credit score.

An odd but useful credit tip:  Credit companies are watching what creditors spend their money on.  If you stop at your local tavern after work and buy one drink routinely, DING!  Your credit score goes down.  Pay cash for that one drink.

3. Do the math

For help, try bankrate.com/calculators/mortgages/new-house-calculator.aspx

4. Get a Pre-approval letter from a Mortgage Company

Some Real Estate agents and/or agencies require the letter before showing properties.

You can shop for the best deal and choose primary and back up lenders.

If you would like mortgage advise, a great resource is hud.gov/buying/wishlist.pdf

Quicken  Loans has entered the mortgage loan market and is getting great reviews.  Their approval process is done on-line which has been appealing to the younger (than me) generation.

5. Make a wish list

For help deciding what you want/need in a home go to hud.gov/buying/wishlist.pdf

6. Choose Wendy Tranter as your Realtor ....... if you live in the state of Florida!

7. Start looking at homes.

A Realtor can schedule showings of multiple homes, back to back, so you can compare.

Take pictures of what you like, get ideas, and make notes.  For ideas, again, visit hud.gov/buying/checklist.pdf

8. Whittle the Choices Down

Visit any neighborhood of interest during the day and at night to observe traffic, noise and the neighbors.  Remember to consider things like commute time and resale value.

9. Make an offer!

There are contingencies that should accompany an offer, for example:  a) The home must appraise for less than the loan amount, b) An inspection may reveal flaws the owner will not fix, c) There may be a dramatic change of income prior to closing.  These are some of the more common contingencies, but discuss all of concerns and questions with your Realtor.

10. Schedule a Home Inspection

If you are purchasing from your sweet Aunt Matilda, get a home inspection.  New construction?  Get a home inspection!  Buying from your Pastor?   Get a home inspection.  No exceptions!  Get a home inspection.  

11. Make a final Walk Through

This is important!  Make sure everything is in working order (faucets, drains, toilets, windows, doors, locks, light fixtures, switches and sockets).  Verify that everything contracted to accompany the purchase of the home has been left behind.  If the window treatments and appliances were supposed to be included, the time to verify the stipulations in the contract is prior to closing.

12.  SIGN .......... CLOSE ..... MOVE IN!   Congratulate your awesome self(ves)!

Homeowners average net worth in 2015 is $174,500  
Renters net worth in 2015 is $5,100

Home Matters!

Visit Wendytranter.com  Hope to see you there!