Are you a first time home buyer who is anxious to get out the door to start looking for houses?

“How prepared are you for the trip you are planning to take? The five questions below are provided to help you map your course before you start your engine.

1. Have you really determined what type of house you want? Most people have a vague idea, but are not really sure. A good exercise to help you determine your ‘must haves’ and your ‘wants’ is to list out all of the things you think will make you happy in your new home. Put your ‘must haves’ and your ‘wants’ in separate columns. Once done, review the list and decide on the top five or six things that you must have in order write an offer on your dream home.  Stick to those top things when you are evaluating homes.

2. Have you been pre-qualified for a loan amount? Knowing that amount will help you determine how much home you can afford and which neighborhoods fit into your price range.

3. Do you know how much you will need for a down payment? Being pre-qualified can also help to determine this amount and the type of loan that will work best for you.

4. Did you know there are different types of loans available? The most common are conventional, FHA and VA, but there are various other options available.

5. Do you know about closing fees? The majority of the closing costs are a combination of fees that are charged by the loan agency, the settlement company and other fees that combine to determine how much money you need to bring with you to the settlement table.

Knowing and understanding the basic things listed above will go a long way in helping you make a smooth transition from renter, to home searcher, to homeowner.”

Source: Realtor.com

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