MortgageReal Estate

10 Things to consider while buying a home

  1. Set a budget and start a house fund– while setting a budget it is important to consider the amount of money you are capable of paying per month for your mortgage. It is sometimes possible to receive a mortgage that is was beyond your pay as evidenced by closure of some homes and that is why it’s important for you to set the budget to limit yourselves.
  2. Check your credit reports and scores– your credit scores can make or break your mortgage loan. In current days lenders do everything they can to reduce risks. This is what has lead them to reduce over reliance on income statements alone and start focusing on the credit scores to detrm9ine your credit worthiness.
  3. Choose the most convenient type of loan for you– there are several choices to pick from: fixed or adjustable loan or convectional or government backed mortgage. The first option offers choices for interest rates while the second option allows you to choose between mortgages from the private sector or from government.
  4. Get approved by a mortgage lender– this process enables you to know whether or not you have qualified for a loan. It also helps you know the amount that the lender is willing to loan you.
  5. Find a real estate agent– most agents only agree to work with you after you get a pre-approval. The agent is paid in commission terms by the seller of the house. The work of a real estate agent is tiring and that is why most of them do not agree to work without a pre-approval to avoid putting so much effort in vain.
  6. Start shopping for a home– it can be done through: the multiple listing service-this is a national wide database for properties under sale, websites such as or and the yard signs.
  7. Make an offer– once you have found a house you like then make an offer to the seller. The offer should not be too low or too high. It should be within a limit you can afford without risking foreclosure.
  8. Get a home appraisal-considering that the lender is putting in much than you are it becomes their duty to find an appraiser to value the current market value of the house you intend to buy. The appraiser visits the home evaluates it and compares the price of those around it to determine how much it is worth.
  9. Get a house inspection– in case you are not a certified inspector then you will have to hire a professional to do the inspection for you. Some of the aspects that the inspector will look at are: foundation, plumbing, electrical systems, heating and cooling systems.
  10. Settlement and closing-the period between purchase agreement and final settlement is known as escrow. When the property is fully transferred from the seller to the buyer then it is known as closed escrow .the transfer process involves filing of paperwork and making of final payment.
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