- Get a copy of your credit report and correct any errors or problems.
- Reduce your consumer debt and pay down credit card balances.
- Assemble a cash down payment.
- Determine how much you can afford to pay for a home. And then how much you are willing to pay for a home.
- Shop for a mortgage loan. Interview a couple of companies and familiarize yourself with the process and mortgage terms.
- Get pre-approved or at the very least prequalified for the amount you are willing to spend.
- Consider neighborhoods where you might want to live and do a little research into the pros and cons of each. This includes checking out the school districts (important for resale even if you don’t have children).
- Find a Realtor that specializes in the neighborhoods you like.
- Once you’ve found a home that suits your needs, work with your agent in determining a fair offer for the property.
- Submit your offer through your Realtor. Be prepared to include a check for the Option Fee and for the Earnest Money Deposit which WILL be cashed.
- Once the offer is accepted, hire an inspector to thoroughly inspect the home you are purchasing and negotiate with the seller (through your Realtor) any repairs that need to be made.
- Make sure your lender has all necessary documents and is continuing to move forward in the loan approval process.
- DO NOT buy a new refrigerator or furniture or car before closing on your home. Lenders will often do a credit check on THE day of closing to ensure there are no changes to your debt to income ratios!
