BEFORE GETTING STARTED (Existing Homes)

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Provided by Rate a Home, LLC

www.rateahome.com

Copyright 2005

 

 

a) Get your personal finances in line.

 

b) Pay off as much debt as possible without using the money set aside for your down payment.

 

c) Don’t borrow any money, other than for your mortgage, during the buying process.

 

d) Avoid credit card debt during the buying process.

 

e) Check your credit report to determine if there are any discrepancies.

 

f) Determine how much down payment you can afford.

 

g) Keep in mind there are certain expenses that go along with buying a home. Such as:

 

        Possible utility deposits

        Phone service hook-ups

        Cable or satellite hook-ups

        First year property insurance premium

        Closing cost to secure the mortgage

        Moving cost

        Inspection of the home you purchase (by a Certified Home Inspector).

        Possible remodeling, such as paint, carpet, etc.

        Appliances

        Etc. Etc…

 

h) Determine a payment you will be comfortable with. Keep in mind the following:

 

        Credit card payments

        Vehicle payments

        Property taxes

        Life insurance payments

        Monthly deposits towards retirement and savings accounts

        Normal living expenses. Fill out a “My Budget” form, available free of charge.

        Child support or spousal support

        Vacation money

 

  i) Attend a home buyer’s school if there is one in the area. Sources to check:

 

        Local Real-Estate Association

        Home Builders Association

        Mortgage Companies

        Real-Estate Agents

        Home Buyers Schools

        Search the Internet