A Mortgage & Home Shopping Checklist For This Spring

Thinking about applying for a mortgage for your dream home or condo? Here are a few tips from consumer experts if you’re considering buying a house this year…

• Get a copy of your credit report 4-6 months before you start home shopping. This will allow you ample time to clear up any discrepancies.

• Pre-qualify for a home loan before you start looking. You want to know how much you can afford before you get in over your head - and waste others’ time as well as your own.

• If you’re investing in real estate, and buying a house for financial reasons, look at each house you’re considering as you would evaluate a purchase of stocks or bonds. In other words, don’t buy one of the first houses in a subdivision. The developer may go bust and be unable to complete the development.

• Make any offer on a contingency that it passes inspection.

• The purchase also should be contingent on your ability to get a home mortgage loan at or below a set interest rate.

• Get an owner’s title insurance policy that covers you, not the mortgage lender, if your ownership is successfully challenged.

• Hire a real estate attorney to review the closing papers and, if you’re buying a house still under construction, to draft or review the purchase contract.

• Before you buy a house, try your commute to work during rush hour. A great mortgage payment is one thing. Being miserable all the time is another.

• Learn about the area surrounding a potential purchase, including the potential for new roads or new development.

• Look at a property while it’s raining to see how water flows across it. Look for signs of poor drainage and danger of flooding.

• Buy a house that’s fundamentally sound in construction and materials, even if it doesn’t have the latest, greatest design features.