New Home Buyer Do’s and Don’ts
As a First Time Home buyer These are Some of the Things You Want to Consider
Do – Check your credit standing, whether with your mortgage broker when you prequalify, or on your own prior to seeking a home loan. There could be erroneous information that you may need to have removed from the credit bureaus. Your FICO score determines much about what debt to income ratio and interest rate you will be able to qualify for. Liberty Bank is not a credit repair company but we can give you good advice as to how to improve your credit score in advance of qualifying for a home loan. You can also obtain a copy of your credit report annually for free at www.AnnualCreditReport.com This report will not give you your FICO scores, however, prequalifying at Liberty Bank WILL give you your FICO scores. Also, this will give you time to resolve any discrepancies that you find on your report.
Do – Consider getting prequalified for a home mortgage loan through Liberty Bank. This service including the cost of your credit report is free at Liberty Bank. Getting pre-approved puts you in a better negotiating position with potential sellers as well as let’s real estate agents and professionals know that you are serious about buying because you have taken the time to get prequalified with a lender. It will also help you to stay within your budget and know exactly what you can or can’t afford.
Do – Find a great team of professionals first. Start with Liberty Bank of Utah to get prequalified. You can visit Liberty Bank at our website www.libertybankofutah.com Next find a knowledgeable realtor with a proven history of success helping first time home buyers. Realtors are very sophisticated, knowledgeable and skilled in helping you to learn local markets and market trends. Remember that working with a realtor costs you nothing when you are buying because the real estate fees are paid by the seller of the home. Finally make sure to close your loan with a dedicated residential title/escrow officer that specializes in the closing of Utah Real Estate loans. Do however remember to shop around for your mortgage and ask for multiple Loan Estimates so that you can compare accurately. Click here for a great resource to help understand the mortgage process.
Do – Get a home inspection. Once you have made an offer on a home, make the offer contingent upon the outcome of a residential home inspection. Although inspections generally cost several hundred dollars, they ultimately could save you not only the inconvenience of moving into a home with serious problems that you aren’t aware of, but also save you thousands of dollars on home repairs for heating, cooling, roofing, electrical, plumbing or other problems that otherwise would have gone unnoticed without an inspection. In the process you might be urged to skip the home inspection to hurry the process. Always get an inspection by a qualified residential home inspector.
Do – Make a budget ahead of looking for a home and stick to that budget. Consider the additional costs of home ownership like maintenance, taxes and contingencies for future repairs and add these to your monthly housing costs budget. Be willing to compromise. Just because we all want saunas, fireplaces and jetted tubs doesn’t mean that it is important that every home you consider has every amenity that you want. Separate your wants and needs and stick to your budget. Make sure to consider your possible future needs before making such a big, life decision.
Do – Get a Home Warranty if possible. Many home sellers will include this fee into the sales price or closing costs for you. Typically they can be bought for as little as $250-$500 and will cover most major repairs during the first year you own the home.