The Home Buying Process
Most people start their home buying search backwards. They go
out and look at houses, find the one they want, contact the
agent who is selling the house and then find a lender to get
approved for a mortgage.
Here are the steps you can take in order to make sure your home
buying search is successful:
Your Finances
Calculate how much debt you have. Get copies of your credit
reports from the 3 different credit reporting agencies. Also,
find out what is your FICO score. You can get copies of your
credit reports and FICO score from MyFico.com. Make sure you check
your credit reports for errors.
Determine how much mortgage you can reasonably afford with your
income and the amount of debt you have. If you have too much
debt, try to pay off some of your smaller debts (credit cards,
personal and student loans). The less debt you have, the more
mortgage you can afford.
Get pre-approved for a mortgage. Find a lender who will offer
you the best rate for your situation.
What Kind Of House Do You Want?
- Do you want a single family house or do you need a two-family
house?
- What are the minimum requirements you want in a home?
- What type of neighborhood do you want to live in? (Close to
schools, shopping, work)
- What don't you want in a house?
Choose a Real Estate Agent
- Get recommendations for agents from friends, family and
co-workers.
- Look up agents in your local newspaper or the internet.
- Interview several agents and choose one who you feel
comfortable with and understands your housing needs.
Choose a Home Inspector
Familiarize yourself with the home inspection process. Get in
contact with several professional home inspectors and compare
quotes. You'll want to do home inspections of each house you are
considering buying.