Preparing to Buy a Home

There is a great deal more to buying a home than you may initially think. While finding the home of your dreams and making an offer is a major part, there are several other important steps. These steps can help to ensure everything goes smoothly.

The first thing you want to do is think about your commitment to a home. If you can’t commit to staying in one place for at least two or three years, then maybe owning your own home is not for you, or at least not at the moment. Buying and selling a home is costly and you may lose money if you need to move again in the near future.

Next, it is important that you take a look at your finances. Start by making sure your credit history is clean by getting a copy of your credit report. Check to make sure that the facts are correct and fix any problems that you may find.

Another important step is to speak with a lender early in your home buying process. Getting pre-approved with a lender saves you time because you now know exactly what price range you can afford. It also puts you in a better position to make an offer when you do find the house of your dreams. You should ask your lender about the mortgage process and the different kinds of loans that are available to you. Finding a mortgage that you are comfortable with is as important as finding the right home.

You may want to make a list of your wants and needs of a home. The needs are those things that are considered must haves such as area, the number of bedrooms, and bathrooms, etc. Wants are things that you'd like to have, but they are things that you could add in the future. These are things such as granite counters or a pool. The goal is to get everything you want and need at a price that you can afford, but that may not always be possible so it is better to determine what things you can be flexible with.

After you find a house that you like, the next step would be to determine if it's priced at market value. Your real estate agent should be able to provide you with a CMA, comparative market analysis, as well as show you the sales and listing history of homes in the area. This allows you to make an educated decision of what an attractive offer may be. There are obviously unique situations which can impact offers and your agent can advise you on those situations.

These are just a few tips to help prepare you for buying a home. Your real estate agent will be able to guide you through the process and answer any questions that you may have.