3 Things To Do Before You Buy A House

Posted on: 18 July 2018

Are you tired of renting a home and are currently thinking about purchasing one instead? Have you finally saved up most or all of the down payment necessary to buy a house? If you've never bought a house before, the process can seem like a daunting challenge at times. Fortunately, the process doesn't have to be that complicated. As long as you keep a few things in mind, the home-buying process can be relatively easy and straightforward. Some of the things that you need to do include:

Separate bank account: Sometimes, when you buy a house, the lender will want to see how long you've had the money that you plan to make the down payment with. Depending on the exact loan process, the lender may want the amount to have sat in your account for at least 90 days before being used to purchase a home. Part of this is because they want to know that you're able to resist the temptation to spend all of your money and that the money hasn't come from illegal sources. The easiest way for them to do this is for you to have one account for yourself and a separate account to hold the money for your down payment.

Get quotes from multiple lenders: Not every lender is going to give you the same mortgage rates when you buy a home. While they may be similar, one lender may offer incentives or bonuses that make them more appealing than their competitors. One may offer a slightly lower interest rate while another might give you lower closing costs because you already are affiliated with them or a partner organization in some manner. Always make sure to research what your total costs are going to be in order to better choose which one you'll be using to purchase the house.

Make a list: After you've pre-qualified for the opportunity to buy a house, it'll be time to go out and actually choose one to purchase. But once you've looked at a couple houses, they'll all start to blend together. Did you like the white house with the picket fence better or the blue one with the wrought iron accents and why? Before you start looking at any houses, make a list of features that you want and that you don't want. Then, when you look at a house, note what features that it has or that it does not have that match your list. Afterward, you can sit and compare it to other homes that you've toured in order to help you to decide whether or not to put an offer on that house.