Buying a Home? Do These 6 Things First

Buying a Home? Do These 6 Things First

Buying a home is a major life event, and certainly one that deserves a lot of consideration. It can also be a drawn out process, but rushing through it could leave you with future regret. Do these things before finalizing the deal.

1. Determine Your Budget - There are a lot of real estate calculators on the Internet that can give you a ballpark figure of mortgage payments based on selling price and down payment. Keep in mind that interest rate can substantially impact the payment. When you determine your budget make sure you factor in homeowner's insurance, utilities, and homeowner's association fees (if applicable), as well as your car payment and insurance, credit cards, and other bills you have. Make sure there is enough left in your budget for unexpected expenses.

2. Shop for the Future - Rather than shop for today's needs buy a home that will last you at least seven years into the future to avoid losing money during a sale.

3. Research the Area - A certain subdivision catches your eye when you make a wrong turn one day and suddenly that's where you want to live. Well, before you make your decision purely on feeling find out everything you can about the area. Maybe all those homes are for sale because crime rate has increased or it has become a popular "cut through" to avoid the wait at the light during rush hour.

4. Know Your Credit - It is no surprise that your credit report is going to be under serious review. Don't go blindly into an appointment with a lender. Know what your report is going to reveal. If there are errors on it take care of getting them removed or updated immediately as it generally takes about 30 days to see changes.

5. Determine Needs and Wants - Have a good idea of what you are hoping to find before you start shopping. Maybe you don't know exactly what you are looking for, but you probably at least know if you want to be city or rural, and the number of beds and baths it should have. You should always focus on your needs and be grateful when "wants" on your list are also met.

6. Interview Professionals - You don't have to hire the first real estate professional you talk to. This is a competitive market, so there are a lot to choose from. Talk to a few and pick one you feel comfortable with.

Buying a home can be an intimidating process. You have real estate lingo thrown at you and maybe you are not even sure what area you should start looking in. Do the things on this list first to make the process easier and more enjoyable.