Home Buying Tips

Select a Home - You'll know it's right when you see it. And once you've found it, you'll want to make sure the surrounding community is as perfect as the home. Check into the quality of the local medical facilities, the student-teacher ratio in the school system, the access to metropolitan airports, cultural events, parks, places of worship, and any other services important to your quality of life.

Secure Loan - Now it's time to work out the financial details. How much will you put down and how much will you borrow? At what interest rate? Fixed or variable? That is, will the principle and interest rate remain fixed for the duration of the mortgage or will the rate vary depending on the financial index on which it is based? And how many years will you take to pay it back? As you negotiate these numbers with your mortgage professional remember you'll also need enough cash for the down payment and closing costs. Visit our Financing section.

Arrange for Homeowners Insurance - Unless you pay cash for your home, one of the requirements that will be made by your mortgage professional is proof of a valid homeowners insurance policy, secured before closing. This policy will protect your investment as well as the lender's. Typically, you are required to pay for a year of the policy at the time of closing; later payments can then be rolled into the cost of your monthly mortgage.

Closing - This is the time to verify that the home you're about to buy is exactly what's presented in the contract. The closing typically requires the following documents:

Supplied by the builder or homeowner:

• Breakdown of closing and mortgage settlement costs
• Original Purchase Agreement
• Title or Deed

Supplied by the buyer:

• Valid identification
• Certified funds for down payment and closing costs
• Loan papers
• Proof of Homeowners' Insurance