Tip 2

Get your credit and your finances in order.

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• Make sure you check your credit for any discrepancies and debts. Check your credit score regularly and review your credit report for accuracy.

• Save money for a down payment - preferably 20% when possible - to avoid paying for private mortgage insurance (PMI). However you can still buy a home with 3.5% down payment.

• Save more money. You will need extra savings to cover an appraisal, appraisal gap and inspections on a property you want to purchase. There’s also a possibility if you have a current home that you may have to pay two mortgages for a few months if you buy a house before you sell and don’t use a contingency on selling your own home before purchasing the new one.

• Get preapproved for a mortgage. Pre-approval is a thorough financial review that helps seller’s gain confidence that your financing will not fall through if they accept your offer.

• Consider a local lender or mortgage broker. You might be tempted to go with an online mortgage lender. However you will benefit by using a network of local lenders and agents who work together frequently to make deals happen. Your Real Estate Broker will have connections with a network of lenders.

• Predict future expenses. Do not forget to budget for surprised repairs and ongoing maintenance of your home. Those buying bigger homes will likely have higher monthly expenses too. You don’t want to suffer because you failed to plan for what could and will eventually happen with various systems in your home.