First Time Home Buyer Checklist

· Choose Your Mortgage Professional

How To Choose?
FHA Approved
VA Approved
USDA Approved
Trustworthy, Dependable Mortgage Loan Officer
Experienced Mortgage Professional
What To Watch Out For

· Get Pre-Qualified With Your Mortgage Professional

You Will Need:
Driver’s License
Social Security Number
Addresses Of Employers – Last 2 Years
Addresses Of Residences – Last 2 Years
Last 2 Pay Stubs
Last 2 Years Worth Of W-2s
Verification Of Any Other Income, (Child Support, SSI, Disability, Alimony)
Last 2 Months Worth Of Bank Statements – All Accounts
Current Retirement Account Statements

What To Ask
What Do I Qualify For?
What Is My Credit Score?
What Are My Closing Costs / Cash Needed To Close?
What Is My Monthly Payment?
Does This Monthly Payment Include Taxes And Home Owner’s Insurance?
Am I Required To Pay Mortgage Insurance / How Much Per Month?
Is This A Fixed Rate?
Does This Mortgage Have A Pre-Payment Penalty?
What Is My Interest Rate?
What Type Of Mortgage Program Is This – Why Should I Choose This Program?
Do You Offer FHA?
If Your Mortgage Is Not An FHA, Why Did We Not Use It?
What Is The APR?
How Many Of These Mortgages Has Your Mortgage Loan Officer Closed?

· Choosing A Mortgage Program/Down Payment Assistance/Closing Costs

FHA Mortgages
VA Mortgages
USDA Rural Development Mortgages
Fannie Mae / Freddie Mac
Ameridream
Seller Contributions To Your Closing Costs

· Choose Your Real Estate Agent

· Your agent will have access to  listing information, so leave the work to them
· Agent will take out the hassle searching new listings, monitoring the market, and making appointments
· Should fully understand your needs as a client and be working toward finding you a home that works for you

 

How To Choose A Home?

Define your needs and wants
· Location, home specifics
· What must you have now – and what can you add later
· Trust your instincts, but do your homework.  Your home must go beyond appearances.  Pay careful attention to its overall age, location,structure, and function.

Real Cost of Owning
· Mortgage – P/I
· Property Taxes - any upcoming assessments?
· Home Owner’s Insurance
· Utilites – what type of heat, how efficient, etc.
· Maintenance – how much money are you going to need set aside for regular upkeep, big or small?
· Add’l costs – you’ll probably need a lot of new items for a one-time cost such as lawn mower, appliances, ladder, etc.

Write Offer
· The goal for both you and your agent is to get a contract signed for the least amount possible.  Together you will determine the “real value” of the home. 
· Your agent is trained to negotiate on your behalf, trying to get a purchase agreement together on the home of your choice. 
 
· Earnest Money / Pre-Qualification Letter

*Your Earnest Money Will Accompany Your Purchase Agreement To The Seller. It Represents Your Commitment To The Offer And, If Your Offer Is Accepted, Will Be Cashed And Held Until Closing By The Listing Agent. It Will Become A Credit Off Your Portion Of Any Cash Needed To Close. If Your Offer Is Rejected, The Earnest Money Will Be Returned To You.
 
*Let Your Mortgage Loan Officer Know You’re Writing An Offer To Purchase A Property So They Can Forward A Pre-Qualification Letter To Your Real Estate Agent To Present To The Seller With Your Purchase Agreement.

· Choose Your Certified Home Inspector
· It is very important for you to take the time to attend the inspection with the inspector.  They will be able to walk you around the home and usually teach the upcoming home owners many tips about the home.
· The inspector is specifically looking for defects in the home that were not evident when the offer was written.  While all homes have minor flaws, this inspection is specifically performed to find issues that could hinder your enjoyment of the property.
· Your realtor will be able to recommend one or more reputable home inspectors for you to choose from.

· Lock Your Interest Rate

Upon Acceptance Of Your Purchase Agreement, You Want To Contact Your Mortgage Loan Officer To Lock In Your Interest Rate Through Your Agreed Upon Closing Date.

· Your Home’s Appraisal

FHA Appraisals Require A Certified FHA Appraiser, VA Appraisals Require A VA Appraiser, And Conventional Loans Require A Certified Home Inspector. Your Mortgage Loan Officer Should Order The Correct Appraisal Type For Your Purchase. The Appraiser Will Contact The Listing Agent To Set A Time To View The Property. The Appraiser Will Then Forward A Copy Of The Appraisal To Your Mortgage Loan Officer For Review And Acceptance. Your Mortgage Loan Officer And Appraiser Are Looking For The Appraisal To Verify Your Home Is Worth What You Have Negotiated With The Seller To Purchase It For And There Are No Repairs. 

Commonly Noted Appraisal Repairs
Chipping / Peeling Paint – Lead Based Paint
Broken Windows
Health / Safety Hazards – Staircases Without Railings, Wood Stoves, etc.
Roofs – Flat Roofs / Roofs In Need Of Repair
No Attic / Crawlspace Access
Outdated Electrical Box
Negative Drainage – Broken Gutters, Leaking / Flooding
Structure / Foundation Problems

· Choosing Your Title Company

It is usually determined by the buyer where the closing will take place.  Your realtor can recommend one or more title companies for you to choose from.

· How To Choose A Home Owner’s Insurance Agent

· Taking Your Final Walk Through – What To Look For

This is your final inspection before the home officially becomes yours.  You should check that appliances and utilities are in working order.  You should also scan for any damage done while the sellers were removing their property.

· Change Utilities To Your Name

Electricity/Electric Heat
Gas/ Oil
Water
Garbage
Phone (Optional)
Cable (Optional)
Internet (Optional)

· Go To Closing!

You Will Need:
Driver’s License
Certified Check/Cashier’s Check
Resident Addresses For The Last 10 Years