Purchasing a home is an important goal for many people. While it can be an exciting and rewarding process, there are also many aspects to look at so that you ultimately end up in the home and mortgage that’s right for you and your family.

Read below and consider these 8 things to know before purchasing a new home.

1. Is your credit where it should be?

Knowing your credit score is the first stopping point when you decide to buy a home. Your credit score will determine what kind of loan you can secure, what your mortgage rate will be, and what assistance programs for which you may qualify.

Checking your score before you begin the home buying process will give you the opportunity to assess any problems and repair if necessary.

2. Can you be pre-approved?

Obtaining a pre-approval before beginning your home shopping is essential. This process will allow you to search for homes with the confidence of knowing a lender will approve you for a loan, how much the lender will approve you for, and what your finance rate will be.

If the lender is not able to offer pre-approval, you then have an opportunity to fix any problems you need to before falling in love with a house.

3. How much home can you afford?

While the lender may approve you for a specific mortgage amount, that doesn’t mean you need to maximize that amount.

Often, you can find a home that works for you for much lower than the amount available to you. Doing this can be beneficial to your bottom line as the more the home costs, the higher the monthly mortgage payment. When a buyer gets into a home that they can pay for, but that leaves no further wiggle room in their budget, it’s called being “house poor.” Spending too much on a home can be dangerous financially as an emergency or job loss can risk house payments not being met.

4. Do you have enough for a down payment on a home?

Different mortgage loan programs have different down payment requirements that can typically range from 3%-20% of the loan. You’ll need to be prepared to put down the required amount when you close on your home purchase.

In checking with your mortgage lender, you may find an assistance program that can help you with some or all of the down payment needed.

5. What requirements do you have for a home?

It’s essential to have a clear idea of what you and your family need in a home before beginning your search. Make a list of what’s crucial to your decision. Things like the number of bedrooms/bathrooms, school districts, square footage, and yard requirements are examples of important things to consider.

6. What location is right for you?

Realistically, you may not be able to find the home you want in your preferred area. Investigate other areas that may be reasonable alternative options and know what you’re comfortable with and what may not be feasible for your family. An experienced realtor can help give valuable insight in this area.

7. How do you choose a realtor?

Choosing your realtor is crucial because they’ll be your advocate throughout the entire home buying process. Pay attention to these critical things when making your decision:

• Is the realtor local? You’ll want someone familiar with the area, as they can provide valuable insight and options of which you may otherwise be unaware.
• What do recent clients have to say about the realtor? Ask the realtor or their employer for a list of references you can contact.
• If you’re considering a realtor, pay attention to their listings and how closely they match the actual property. The results are a good indication as to the honesty and integrity of the realtor.
• Ensure the agent has the right licensing and credentials necessary to sell in your state. When verifying with the agency in your state that regulates the requirements you can also check for any history of complaints on the realtor.

8. Does the home have HOA fees or other special fees or taxes?

It’s always important to ask about any additional costs you may see in purchasing a particular home before you seriously consider moving forward with it. Ask about things like HOA (Home Owners Association) fees, additional taxes, or any other regular fees that may be associated with the home or neighborhood so that you aren’t surprised with them later.