Home Buyers Tips

Buying any piece of property is a complex financial transaction. Before you start looking, you should be aware of a few demands on your pocketbook that will probably arise:

	Check your credit report. Are all your debts paid on time? Cancel credit cards you never use. While you may not have a balance due, lenders will consider them potential debt when qualifying you for a loan.
	Don't purchase any big ticket items, such as a car, before going out for a mortgage. Wait until after you close on your property.
	Make sure you have enough cash on hand. Traditionally you need 10% of the purchase price as a down payment, plus bank closing costs which will run 2-4% of the amount you are borrowing.
	Be prepared to set up an escrow account at closing. This could be as much as 8 month real estate taxes and a couple of months of homeowners insurance.
	Don't forget to budget $750-1500 for an attorney to handle your real estate transaction.