Don’t forget the little things when buying a home

As you’ve already read here, conditions are ripe to become a homeowner, and it’s time to determine if you’re ready to take the leap.
While the price of the home is the largest factor, don’t forget about loan fees and closing costs, which add to your total financed amount.
Since banks are stricter in their lending, step one is to polish up your credit report. A higher score gives you more power when it comes to negotiating terms and interest rates.
Similarly, a larger down payment will positively affect your mortgage terms and reduce the amount you have to finance.
If you can’t manage 20 percent down, you will likely have to pay a monthly mortgage insurance premium.
Upon pre-approval from a lender, you’ll know how much loan you qualify for, and how much is required for the down payment. It’s best to secure pre-approval before you begin looking at homes, especially since sellers will see your offer as a solid one worthy of consideration.
In addition to newer fees being assessed on loans to less than stellar applicants, there are standard closing costs associated with the purchase, including appraisals, legal fees, credit reports and more.
All are included up front on your settlement statement and some may be negotiable.
Contact a Realtor today to get the ball rolling and find out how much home you can afford.
The Placer County Association of Realtors is the professional trade association representing approximately 2,700 Realtors, affiliates and other related representatives in Placer County. For more information call (916) 624-8271 or visit online at pcaor.com.