Your first-time home buying experience can be stressful and chaotic,
or it can be smooth and easy. The difference comes from having a solid
plan and knowing what to expect. The following checklist will help make
your home buying process a smooth one:
Step 1. Review your credit and finances.
Mortgage lenders will put your credit and finances under the
microscope. So before you begin the home buying process, you should
review these things for yourself.
Start
by requesting a copy of your credit report from the big three credit
agencies -- Equifax, Experian and TransUnion. Review your credit report
closely for errors. If you find an error, work to correct it right
away, as the process takes time. For instructions on correcting your
credit report, refer to the websites of the three agencies.
You
should also review your finances to determine how much of a home you
can comfortably afford. Use an online mortgage calculator to determine
monthly payments based on total price. This will give you a rough idea
of where your comfort zone lies.
Step 2. Learn about mortgages.
Once you've reviewed your finances, credit and purchasing power, you
should start researching the different types of mortgages. Each type of
mortgage has its pros and cons. Finding the one that's right for you
will depend on many factors, such as how long you plan to own the home,
how much you can afford to pay up front, etc.
When
reading about the different types of mortgages, pay close attention to
any sentence that starts with "This mortgage might be a good option for
you if..."
Step 3. Visit HomeBuyingInstitute.com
At
HBI, you can learn about the home buying process in depth. HBI is the
Internet's largest library of home buying tips and advice, and best of
all it's free!
Step 4. Make a wish list.
Now that you have a better understanding of the financial side of
things, you can begin to create a home "wish list." Write down all the
things you want from a home. Include the size, features, location, etc.
Categorize each item on the list as a "need" or a "want." This list
will save you time, narrow down your search, and help you stay focused.
Step 5. Find a good agent.
Even with all of the home buying information available online, it's a
good idea to hire a professional real estate agent. When you consider
how much money you'll pay for a new home, an agent's fee will seem
miniscule by comparison. Combine that with the peace of mind you get
from having professional guidance, and it's even more apparent why you
should use an agent.
To
find an agent, start by asking family or friends if they can refer a
local agent they were happy with. If that doesn't produce any leads,
try using search engines or the websites of well-known companies.
Step 6. Get pre-approved for a home loan.
Pre-approval from a mortgage lender will help you in several ways: (1)
It will reveal how much you can realistically afford. (2) It will help
you identify credit problems early on in the home buying process. (3)
It will show sellers you're serious about buying (which can be helpful
when there are multiple buyers / offers).
Step 7. Get a home inspection.
Whether you're buying a new home or an older one, a home inspection is
always a good idea. Inspections cost around $500, which is a small
price to pay for peace of mind. A home inspector will examine the
home's roof, foundation, heating / cooling system and other important
areas.
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Copyright 2006, Brandon Cornett. You may republish this article online
provided you keep the byline, author's note, and active hyperlinks.
Learn more:
For more advice on first time home buying, visit HomeBuyingInstitute.com -- the Internet's largest library of home buying tips and articles. Online at http://www.HomeBuyingInstitute.com
