Comparison Shop Lenders
Before you begin looking at homes for sale, find out how much you can afford by getting pre-qualified with a lender. Decide how much you can comfortably pay each month.
Pick your lender carefully. A good lender can save you heartaches and money down the road. Interview a few lenders before deciding upon one. Make sure lenders are familiar with first-time home buyer programs.
Don’t allow every lender to run a credit check. Too many credit checks for loan request will damage your credit score
Check the Title Report and CC&Rs.
Have your real estate agent check for liens with a title report, and also review the covenants, conditions and restrictions common in neighborhoods with homeowners associations. These are rules that can affect your decision to buy and may include restrictions on pets.
Get a Home Inspection
A home inspection will find any problems, including ones the seller might not know about. A report will tell you where repairs will need to be fixed. You, the buyer and seller can then negotiate on the repairs. Home inspection usually cost about $150 to $200.
As a home buyer, you should interview several home inspectors, asking about their qualifications and how long they’ve been in business.
Get a Home Warranty
A home warranty (not the same as homeowner’s insurance) covers problems that could cost thousands of dollars to fix, such as replacing a heating unit. The warranty covers appliances, hot water heaters and plumbing, electrical problems, and heating and cooling systems. Home warranties cost about $350 a year.
Understand the Type of Loans and Choose Carefully
Avoid adjustable-rate mortgages, option ARMs, interest-only loans, balloon mortgages. Typically cases, fixed-rate mortgages are the safest route.
If you do decide an adjustable-rate mortgage, understand the advantages and disadvantages. Ask lenders if you have questions. Have more information will help you in making better decision.
Know about risky side of mortgage loans, such as teaser rates, negative amortization and prepayment penalties. Always read all the paperwork.
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