In the Market for a New Home? Make Sure You Start with the Right Steps
Buying a new home requires a lot of work. Some of the work begins before you even start shopping for a home. If you don't take the right steps, you could find yourself facing some serious headaches. Before you start shopping for your new home, read the information provided below. These tips can help to take the headache out of buying a new home.
Get to Know the Lenders
If you're ready to buy a home, don't settle for the first lender you talk to. That can actually leave you with a loan that doesn't work for you. Not only that, but you could also end up paying more for the loan than you anticipated. Before you start shopping for a new home, get to know the lenders in your area. Sit down and discuss terms with several lenders. That way, you can see what's available before you commit to one lender. Once you find a lender you like, work on securing the financing. That way, you have a loan approval before you begin your house-hunting.
Create a Paper Trail
If you're going to be using gifts to secure some of your down payment and closing costs, start creating the paper trail before you choose the house you want to buy. You're allowed to use gifts as a way to finance the closing costs and down payment for your new home purchase. But, you'll need to show documentation for where the money came from. Make copies of any checks you receive for down payment assistance. If money is transferred into your bank account, document what the transfer was for. That way, you have the paper trail when you do the final paperwork for your new home.
Shop in the Right Order
When you start shopping for your new home, make sure you conduct your search in the right order. Many people shop for homes first and don't worry about the neighborhoods. That's the wrong way to look for a home. Conducting your search in that order could cause you headaches for years to come. This is especially true if you move into your dream home only to find that the neighborhood is less than desirable. Instead, shop for the right neighborhood or planned community first. Once you've found the perfect neighborhood or community, start searching for the perfect home.
Don't Leave Money on the Table
If this is your first home purchase, don't leave money on the table. That could happen if you don't ask about rebates or first-buyer programs. When you're working with your agent, ask about all the first-buyer programs that are available. That way, you don't miss out on funds for your home purchase.