BEFORE GETTING STARTED (New Residence to be Built)

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Provided by Rate a Home, LLC

www.rateahome.com

Copyright 2005

 

 

a) Get your personal finances in line.

 

b) Payoff as much debt as possible without using your down payment money.

 

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 of a down payment you can afford.

 

g) Keep in mind there are certain expenses that go along with building 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 your mortgage

        Moving cost

        Interest carrying cost while your home is under construction

        Property insurance, property taxes and utilities while your home is under construction

        Appliances

        Landscaping

        Window coverings

        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

        Child support or spousal support

        Monthly deposits towards retirement and savings accounts

        Normal living expenses (prepare a “Budget” provided free)

        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