Still Thirsting for more Homebuying Information?

But finding the appropriate buyer’s agent for you is crucial. So you may be better represented in this transaction by an agent who’s working just for you. Dual Agent: These agents represent both the buyer and the seller in a negotiation. Interviewing several and finding one with significant experience would probably be wise. However, this type of agent could face a conflict of interest. So, as you deal with real estate agents, remember whose interests they represent. Although an agent may offer financial advice, take it with a grain of salt and keep in mind that they’re not experts in personal finance. A dual agent can’t divulge confidential information about one client to another.

Notary Fee: To get the business documents notarized, you will be asked to pay the fee for a notary. And don’t forget about the costs of getting a house inspection… Homeowner’s Insurance Fees: Your lender will most likely require you to purchase homeowner’s insurance – my response – which may include additional fees. We’ll talk about this major mistake next. See if you qualify for any property tax exemptions and register for them. People become house poor when they have spent so much on buying a home that they don’t have enough to afford other common expenditures. Moving costs, although not exactly hidden, are easy to overlook in the stress of homebuying.

But just a month of income and expenses will only be a snapshot of your financial picture. This may open your eyes to where you are wasting money. After you’ve gathered this information, study it to discover some financial habits you may not have considered before. Of course, never underestimate the power of habit, and only make realistic expectations about yourself and your ability to cut down on certain expenses. As a result, you may decide to save more before purchasing the house of your dreams. Also look at a few months of your financial activity to consider non-monthly expenses like vacations, wedding and birthday gifts. Am I spending too much on lattes?

First, we’ll go into the essential first step: budgeting. Homeownership may seem like a wise alternative to renting, but it’s not necessarily going to be cheaper — at least in the short term. What are you forgetting to include in your budget? If you’re like most people and need to take out a loan to buy a house, you’ll have to make monthly mortgage payments. Find out on the next page. It’s terrifyingly easy to overestimate what you can afford.

Credit reporting agencies calculate this number based on your credit report. This report shows not only how consistently you’ve made payments in the past, but what kind of accounts you’ve opened and how long you’ve had them. The companies that you pay regular bills to, like utility and credit card companies, tell credit reporting agencies — like Experian, Equifax and TransUnion — about their financial dealings with you. Using this information about your payment history and accounts, the agencies calculate your credit score and can offer it to interested parties like credit card companies, your prospective employer or even you. And this information, of course, is of particular interest to the companies who are considering granting you a loan now.

So you thought you did away with grades and competitive scoring when you finished school? Turns out, a three-digit summary of your creditworthiness may be the obstacle or the key to your perfect home. Your credit score is a number between 300 and 850 that is meant to represent how credit-worthy you are. Despite your present sense of financial responsibility, if you have a dark past of not always paying bills on time, it could mean you’re going to have a very hard time securing a good loan during your house hunt.