Quick Tips
So you're thinking about buying a home for the first time. Or maybe your current home is a bit too small. Or too large. Before you start shopping, check out these quick tpis.
Know why you're considering a home purchase for the first time:
Prioritize with your spouse, partner or co-buyer the most important requirements of your dream home. Address differences and concerns about finances quickly and honestly. Don't find out there's a major disagreement a week before closing.
Determine which type of home you're interested in (single-family, condo, or multi-family).
Know what kind of neighborhood or town you want to live in: city, small town, suburbs or rural setting. Do you want to be close to schools? Close to work? What kind of amenities or shopping options are you interested in?
Create a "wish-list" of what you want in an ideal home.
Manage the financial part of the process early:
1. Know how much debt you have, and get rid of as much as you can.
2. Check your credit report. Document and correct errors; save copies of correspondence between you and creditors.
3. Use worksheets and online calculators to determine how much home you can afford and how much of a home loan you're comfortable paying off.
4. Consider preapproval, versus prequalification, if you're really ready to buy, and know the differences between the two:
-Preapproval--your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.
-Prequalification--your lender does a preliminary evaluation of your ability to pay for a home, along with an estimate of your mortgage amount.
Preapproval demonstrates a serious commitment on your part to the seller, and can be advantageous if you find yourself in a competitive bid process.
-Preapproval--your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.
-Prequalification--your lender does a preliminary evaluation of your ability to pay for a home, along with an estimate of your mortgage amount.
Preapproval demonstrates a serious commitment on your part to the seller, and can be advantageous if you find yourself in a competitive bid process.
Checklist
Make a checklist for your major tasks:
-Develop a timeline for the major steps in the process.
-Give yourself time for preliminary research.
-Obtain "real" information.
-Get professionals involved and understand their roles.
-Check your credit.
-Prequalify for a mortgage.
-Consider preapproval if you're really ready to buy.
Home Buyer Supplies
Build a Buyer's Bag, containing:
-Binders, notebooks, filler-paper and photo protectors
-A camera for photographing neighborhoods, open houses, and ideal homes
-Pocket calculator
-Your research
-Phone contact list
-Map of your target city or town
-Your action list
Helpful Links
Get educated and learn about the process before you enter it. Helpful resources include:
HUD's "Homebuyer's Kit"
Federal Consumer Information Center
Fannie Mae/Homepath
U.S. Consumer Gateway has good information and links available through a number of government resources.
Consumerworld.org features links to consumer-focused information and empowerment sites on hundreds of topics, including housing.