Here are a few precautionary
steps to consider before buying a home
The home buying process can seem complicated, but if you take
things step-by-step, you will soon be holding the keys to your
own home!
Nine steps to buying a home
How much you can afford?
Know your rights
Shop for a loan
Learn about home buying programs
Shop for a home
Make an offer
Get a home inspection
Shop for homeowners insurance
Sign papers
Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating,
current monthly expenses, down payment and the interest rate.
The calculators below can help, but it is best to visit a lender
to find out for sure.
This may be the largest and most important loan you get during
your lifetime. You should be aware of certain rights before you
enter into any loan agreement.
You have the RIGHT to shop for the best loan for you
and compare the charges of different mortgage brokers and
lenders.
You have the RIGHT to be informed about the total
cost of your loan including the interest rate, points and other
fees.
You have the RIGHT to ask for a Good Faith Estimate
of all loan and settlement charges before you agree to the loan
and pay any fees.
You have the RIGHT to know what fees are not
refundable if you decide to cancel the loan agreement.
You have the RIGHT to ask your mortgage broker to
explain exactly what the mortgage broker will do for you.
You have the RIGHT to know how much the mortgage
broker is getting paid by you and the lender for your loan.
You have the RIGHT to ask questions about charges and
loan terms that you do not understand.
You have the RIGHT to a credit decision that is not
based on your race, color, religion, national origin, sex,
marital status, age, or whether any income is from public
assistance.
You have the RIGHT to know the reason if your loan
was turned down.
Step 3: Shop for a loan
Save money by doing your homework. 4G Mortgages will advise and
work with our selected loan partners to compare costs and
interest rates, negotiate to get a better deal and consider
getting you pre-approved for a loan.
Discuss the process with your real estate agent. If the seller
counters your offer, you may need to negotiate until you both
agree to the terms of the sale.
Step 7: Get a home inspection
Make your offer contingent on a home inspection. An inspection
will tell you about the condition of the home, and can help you
avoid buying a home that needs major repairs.
Step 8: Shop
for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to
shop around.
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure
to read everything before you sign!
