Today there are a lot of people out there considering buying a home. With good reason this is a good time to think about purchasing a home....Rents are high and affordability of a home is the lowest it has been in decades. In a lot of cases you may be able to own for what you pay currently in rent. But the task can be overwhelming as well....So, where do you start?
First, I recommend to anyone looking to buy a home; check your credit report. All three credit bureaus will give you a free copy of your credit report once a year. Make sure that the information on there is accurate and if not begin the process to correct it.
Second, sit down and decide what is a comfortable mortgage payment for you. For some it may be equal to or less than they are paying now. Others may want to go up a little. Make a descsion of what you can realisitically afford and want to spend.
Third, decide what you want in your new home. Is it four bedrooms? fenced in yard? garage? ranch? 2 story? certain neighborhoods? The list goes on....
Fourth, begin your home search online. The latest studies have homeowners beginning to search for a home online in the 90% range. I would not doubt it is closer to 100% now. See what you like and do not like out there. This will help you on your list of features you want and do not want.
Fifth, locate a Realtor you feel will be a good fit for you. Remeber this is going to be the largest purchase you make in your lifetime. Make sure you are 100% comfortable with the Realtor and the Realtor is with you. Not everyone is a good fit together.
Sixth, give your Realtor your wish list. Also,your payment area you want to be in. They should send you homes that will fit your budget or be cheaper. It is easier for Realtor to back into a sale price based on your monthly payment you desire...
Seventh, contact a mortgage broker. Either one you know or was referred to you or one by your Realtor. Get a pre-qualified letter/pre-approval letter before you go and view homes.
Eight, Pick out no more than 5 homes you want to look at in one day. ( You may want to look at 10 to 20 homes and that is okay) The reason I say five is more than that and you tend to forget what you looked at and homes start to get confusing. Five is a good number and keeps the comparison fo the homes fresh in your head.
Nine, bring a noterbook. Take notes of the homes you visited. Make notations of things you like and did not like about a house...This will help you down the road when you are trying to decide on which house to buy. See what you have to do for repairs, applainces, or general maintenace of the homes.
Ten, when you have narrowed yoru home selections down to two or three homes; schedule with your Realtor to go back and look at those homes again. Do them one right after the other. This will keep everything fresh in your mind and allow you to be sure you made the right choice for a house.
Eleven, Once you have selected a home; ask your Realtor to give you the comparables in the nieghborhood or area that have sold in the last 3 to 6 months. You want at least 3 homes. That will give you a better idea of how the price compares to what it should sell for.
Twelve, Discus with your Realtor an offer price based on the asking price and the comparables in the area....make an offer that YOU are comfortable with....
if you follow these tweleve steps it will help you ensure that you are getting a home that is best suited for you and meets your wants and needs in a budget you can comfortablly afford. In addition, the overwhelming feeling of looking for a home will not be as daunting and you can be sure you made a good informed descsion.
But, you have to know that this is only half the process...finding the right home is only the start...tomorrow i will outline what to do once you have agreed to a price and terms...
Dave diCecco
Realtor/Broker
www.davedicecco.com.
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