Buyer's Guide

Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting the Annual Credit Report. Lenders generally require a minimum score of 620 to qualify. Scores range from approximately 300 to 850. Generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at Credit Karma.

Make sure to find someone that you are comfortable with and who makes you feel at ease. Ask lots of questions and make sure they have answers that satisfy you. Your Real Estate Agent can help provide options.

Once you have the right mortgage Lender, make sure you at least get a pre-approval. Qualifications are only a guess based on what you tell the Lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The Lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.

Now that you've found the home you want, you have to make an offer. Ask your Real Estate Agent to run a Comparative Market Analysis to help decide on the best offer price. Once you've made your offer, don't think it's final. The seller may make a counteroffer to which you can also counteroffer. You don't want to go back and forth too much. Somewhere, you have to meet in the middle. Once you've agreed on a price, you'll make an earnest, which is money that goes in escrow to give the seller a sign of good faith.

Make sure you get a home inspection before you close. It will be well worth the money spent since it ensures the property's structural soundness and good condition.

Set the closing date that is convenient to both parties. Remember that you may have to wait until your rental agreement runs out, and the seller may have to wait until they close on their new house.

Be sure you talk to your Lender to understand all the costs that will be involved with the closing, so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.