First Time Home Buyers' Checklist

By: Roby Pagong

One of the most important things that a person invests in is purchasing a home. It takes careful planning and research to be able to purchase the right home. In order to lessen the burden they have to go through, some people will get the services of the real estate agents. However, some do not want to do this because for them, it is just an added expense. This is not the case because the buyer does not have to pay the agent. The seller is tasked to give him his sales commission.

An agent will help you in many ways. He can assist you in finding the home you want basing on the criteria provided. He will also provide you with all the viable options when you encounter problems and most importantly, he will protect your best interest. An agent is definitely a big help especially if it is your first time to buy a house.

To help you, here is a checklist you can refer to:

1. The first thing you need to do is to check your credit score. You have to see to it that it is high because you will encounter a lot of problems if it is low. When it is low, repair it first. It will take time but it is better than to force yourself to purchase a home and encounter more problems after doing so. Low scores will give you bad mortgage terms. It would also make it difficult to get an approval. And if ever you get an approval, you will get high interest rates.
2. You should also learn about the different mortgage terms. There are various types. You need to know what they are to be able to choose the right term for your current financial condition. Picking the right term is essential because this will be able to give you the chance to pay your loan more comfortably. This means that you will less likely default your payment because the term is suited for your monthly earnings.
3. It is also important that you are able to choose a good lender. There are a lot of lenders in the market today. However, some are just out to get your money. In order to pick one, make your own research. Search for reputable banks or firms. They should not only offer low rates. Make sure that they clearly explain their different terms to borrowers as well.
4. After talking to your lender, look for your ideal home. It should be within your budget. In addition to that, see to it that you consider the location. The location is very important because it will influence your daily life. Moreover, it will also be a factor when you resell your house in the future.
5. Once you have found the right home for you, prepare for the closing. Read the documents given to you in advance and discuss with your agent what you can do to reduce the closing fees. There are charges that you can negotiate.

You should know what has to be done when purchasing a home. It is also essential that you have an agent to represent you in the transaction.

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