vIf you want to buy a new home you must be careful in the steps you take. Two things you need to do is to check your credit and know all fees involved. This will help the process go much smoother for you so you can get moved into your new home. Below is more information about this to help you get started:

Check Your Credit

A lending institution looks at your credit history to determine if you qualify for a home loan. If your credit is poor, they may not offer you a loan at all. If your credit is not poor but still not very good they may offer you a home loan with a high-interest rate.

If you find your credit score is low, you should take time to raise it before you apply for a loan. This way you will get a much lower interest rate, which will help your monthly payments be lower.

You can contact the three main reporting agencies: TransUnion, Equifax, and Experian to get a copy of your credit report. Get a report from all three as not all information may be on one. You can get your credit reports free one time per year.  

Know All The Costs

There may be hidden costs that you are not aware of. For example, during the closing, you may be required to prepay the home's taxes.  Some other fees you may have to pay at closing include:

  • Credit report fee: Your lending institution will likely charge you for obtaining your credit report.
  • Origination fee from the lender: Fee for processing the loan documents.
  • Appraisal fee: Fee for an appraiser to determine how much the home is worth.
  • Flood zone fee: Your lender may check to ensure your home is not in a flood zone area
  • Government recording charges: The local and state government must record your loan documents, mortgage, and deed.

Your insurance company may require that you have a home inspection done on your home, and this is an extra charge you will have to pay out of pocket. The loan lender may also require a survey of the property to ensure you know the boundaries.

Many of these fees can be very expensive so you need to be aware of them. The last thing you want to have happen is to not be able to pay fees at closing.

Talk with your real estate agent like those at The Kotaska Team LLC - RE/MAX ALLIANCE GROUP about this information and they can answer any questions you may have.