Thursday, May 5, 2011

What you MUST do before purchasing a home

The process of buying a home conjures up many things-stressful, confusing, expensive, etc.  There is no guarantee that your process will be a smooth one but there are some basic things that you can do to prepare and set yourself up for success:

  1.  Get prequalified from a professional PRIOR to looking at any property.  I cannot stress how important this is for you and the realtor you are working with. 
     a.  You need to know what you can afford so when you do go looking for your dream home, you are looking in the right price range. 
     b.  You might have an issue on your credit report that you were not aware of.  I have seen many situations where there is a collection or a judgment that the borrower is totally unaware of and it has effected their credit score negatively.
     c.  You should be discussing all mortgage options so you can better understand what your price range may be.  Some products may have a much lower interest rate thus having a lower monthly payment.  Make sure the pros and cons of each product are discussed.

   2.  Know what your closing costs are.  When you buy real property in NY (condo or single family home) closing costs will be significant.  You MUST factor that in when deciding on cash needed for the transaction.  I have seen all too many times when the borrower isn't aware and have already entered into a contract only to find out that they don't have the necessary funds.

   3.  Make sure your realtor and mortgage professional are on the same page.  Good communication is essential prior to looking at property.

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