Easy Steps for Buying a New Home
RISBJ Staff | Sep 29, 2015
by Daniel E. Giroux
- Preparation Period
- Build a good credit history. Pay all bills on time and keep balances low.
- Get mortgage PRE-APPROVAL.
- Consider hiring an attorney to review all contracts and agreements associated with the home buying process. Often lenders will have attorneys available for review.
- Figure out what you can afford for a down payment and where it will come from.
- Consider closing costs which can include taxes, attorney’s fees, and transfer fees.
- Consider utilities and monthly bills.
- Interviewing a Real Estate Professional
- Get a referral from friends, family, and work colleagues that have worked directly with that realtor. Do not use a friend of a friend without a proven track history.
- Interview several buyers’ agents. Ask about buyer’s representation contracts and agreements; make sure you understand the terms.
- Explain your needs and expectations to the real estate professional you choose to work with.
- Finding the Perfect House
- Determine what is important to you; particular schools, neighborhood amenities, monthly mortgage payment, public transportation, walkability, etc.
- Make sure you include home owner’s assessments, utilities, and taxes when calculating the monthly mortgage payment.
- Finance the Property
- Contact your mortgage broker or lender.
- Make sure you understand the financing terms—ask the lender for clarification, if necessary.
- Follow your loan originators direct. They are there to assist you but need to be on the same page.
- Do not apply for new credit, quit your job, change jobs, or deposit large amounts of funds during the loan process.
- Make an Offer
- Read all contracts before signing—make sure you understand all of the terms, ask questions.
- Place a competitive bid and be prepared to make a counter-offer.
- Keep your credit score stable and in-check by waiting to purchase any big-ticket items until long after the closing.
- Ensure the property is inspected by a licensed home inspector.
Daniel E. Giroux NMLS 26531 Owner, A-Plus Mortgage LLC NMLS # 2748 Licensed Rhode Island Lender And Loan Broker – APLUS NMLS# 2748 Rhode Island Loan Broker License– 20041842LB ,Rhode Island Lender License– 20142971LL.
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