What Homebuyers Should Know

Whether you are a first-time homebuyer or a veteran, there are certain things you must know before you buy your new home. Here are the ten top things to know about homebuying.

1. You shouldn't buy if you can't stick around. If you know you're not going to be able to stay around in your new house for very long, then buying is probably not the best decision for you right now. Mortgages Explained recommends that you be able to stay in your house for at least five to ten years if you are going to buy.
2. Build up your credit. Check up on your credit before you begin house hunting. Order your free credit report and check it for accuracy.
3. Only look at homes you can really afford. Though you might qualify for larger loans, Mortgages Explained advises that homebuyers borrow only what they can comfortably afford. Buying too much house will put you in danger of foreclosure and leave you with little or no money for other expenses.
4. A 20 down payment is not an absolute necessity. If you can't make a down payment of 20, don't worry. Mortgages Explained partners with many lenders who are willing to loan money to homebuyers who can't make this kind of down payment.
5. Shop for homes in areas with good schools. Even if you don't have children, you still want to buy a house in an area with quality schools. The reason for this is that homes in these areas have higher property values than similar homes in bad school districts.
6. Recruit professional assistance. Through Mortgages Explained and similar sites, you can find out most of what you need to know in order to buy a home. However, it can make things a lot easier if you hire a professional buyer agent.
7. Choose wisely between points and rates. Most Mortgages Explained lenders will give you a lower interest rate if you pay discount points, which are a portion of the interest that you will pay upon closing. If you plan to stay in your home for more than five to seven years, it's usually a good idea to pay the discount points.
8. Get pre-approved. Pre-approval will help you narrow your search only to houses you can afford, and it will enable you to make a serious offer when you find the right house.
9. Research before you make an offer. Your offer should be based on the selling prices of similar homes in the area. Look at sales data for the last three months.
10. Have a home inspection done. Have the home inspected by a professional before you make an offer in order to identify any expensive repairs that need to be made.

There are also other things to do to prepare before you apply for mortgage help.