Quick Tips for the First Time Home Buyer


• Know why you're considering a home purchase for the first time.

• Prioritize with your spouse, partner or co-buyer the most important requirements of your dream home. Address differences and concerns about finances quickly and honestly. Don't find out there's a major disagreement a week before closing.

• Determine which type of home you're interested in (single-family, condo, or multi-family).

• Know what kind of neighborhood or town you want to live in: city, small town, suburbs or rural setting. Do you want to be close to schools? Close to work? What kind of amenities or shopping options are you interested in?

• Create a "wish-list" of what you want in an ideal home.

• Manage the financial part of the process early:

1. Know how much debt you have, and get rid of as much as you can.

2. Check your credit report. Document and correct errors; save copies of correspondence between you and creditors.

3. Use worksheets and online calculators to determine how much home you can afford and how much of a home loan you're comfortable paying off.

4. Consider preapproval, versus prequalification, if you're really ready to buy, and know the differences between the two:
  • Preapproval--your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.
  • Prequalification--your lender does a preliminary evaluation of your ability to pay for a home, along with an estimate of your mortgage amount.
Preapproval demonstrates a serious commitment on your part to the seller, and can be advantageous if you find yourself in a competitive bid process.

Make a checklist for your major tasks:
  • Develop a timeline for the major steps in the process.
  • Give yourself time for preliminary research.
  • Obtain "real" information.
  • Get professionals involved and understand their roles.
  • Check your credit.
  • Prequalify for a mortgage.
  • Consider preapproval if you're really ready to buy.
Build a Buyer's Bag, containing:
  • Binders, notebooks, filler-paper and photo protectors
  • A camera for photographing neighborhoods, open houses, and ideal homes
  • Pocket calculator
  • Your research
  • Phone contact list
  • Map of your target city or town
  • Your action list

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