• Save up for a down payment

  • set up a separate account and make consistent deposits with each paycheck

  • with a larger down payment, the lender will view you as a less risky borrower

  • a small down payment may require Private Mortgage Insurance (PMI) which will be an additional expense

  • There are first time buyer programs to consider

• Besides the down payment, set aside additional funds to cover the transaction costs

  • transaction costs include:

    • inspections

    • appraisal

    • loan closing costs

      • points

      • credit report

    • attorney fees

    • title fees

  • Don’t leave yourself short for contingencies

• Review your finances

  • do not open or close other lines of credit, but pay down debt

  • do not drive up to the closing in a new Maserati; your lender will give side eye to imprudent expenditures

  • do not make transactions that would make the lender doubt your seriousness in paying off the mortgage loan

• Organize your financial records

  • W-2 forms

  • Pay stubs

  • Bank statements

  • Tax returns

• Determine what you must have and must not have

  • consider the characteristics of the house

  • consider the characteristics of the neighborhood

  • consider the characteristics of the local government and school system

• Think longer term since there are transaction costs

• Work with professionals with local knowledge who can guide you through the process

  • Real estate brokers and agents

  • Preferred lenders

    • commercial banks

    • savings banks

    • credit unions

  • Mortgage brokers

  • Inspectors

  • Appraisers

Let Capital Real Estate Group help you prepare to purchase a home.