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Buying a home is not like buying lunch. It is a long term decision that will affect your life for a long time. For that reason it's important to know all the basics of buying a home before you start looking. The following steps should be taken when looking to buy a new home.
Get your credit report in order: Many people do not realize how important it is to check your credit report periodically to make sure it is accurate. Prior to looking at properties you must get your finances in order. This is the time to review your credit report and clean it up to maximize your credit score. Pay off any past due amounts, or negotiate a settlement price to close the debt. Get such agreements in writing, before paying any settlement. Keep all receipts for any settled items from your credit report since it may take months to get the debt actually removed.
Get pre-approved for a loan: Once you've cleaned up your credit report, you're ready to find a lender and get yourself pre-approved for a loan. Being pre-approved offers a number of advantages. It will clarify the price range you can afford, and let you place an immediate offer when you find the house of your dreams. If you have to wait for pre-approval, someone could buy the house right out from under you.
Research your home-buying options: First and foremost, decide what kind of property you are interested in. You can't start looking if you don't know what you want. Do you want a foreclosure, real estate, or property for sale by owner? There are many web sites that list homes according to city, state, or price range. Visit these sites to see pictures of homes, and to get an idea of what you are looking for.
Know your wants and needs: Sit down and list all the features you care most about. These things may include: Location, size, available parking, style, heating and/or air conditioning. Be sure to think about features you care about for the area the house is in such as: traffic, noise, neighbors.
Remember that you will probably not find the "perfect" home. Perfect homes are not found, they are made.
Find a good real estate agent: A knowledgeable real estate agent will make your house-hunting much easier. A good real estate agent is usually a good negotiator, and will be able to help you with the complicated paperwork involved in placing an offer on a house or in closing a deal.
It's essential that you have a real estate agent working for you as the buyer, rather than relying on the seller's agent for the house you want to buy. The latter can involve a conflict of interest, which usually works to your disadvantage.
To select a real estate agent, you should check with your friends and neighbors for recommendations. Find an agent you feel comfortable with and who is knowledgeable about the area you hope to buy in.
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