- 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.
Checklist
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.
Home Buyer Supplies
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; a comparison checklist of homes features
Helpful Links
Get educated and learn about the process before you enter it. Helpful resources include:
- HUD's "Homebuyer's Kit"
- Federal Consumer Information Center
- International Real Estate Digest
- National Association of Exclusive Buyer Agents
- Fannie Mae/Homepath
- U.S. Consumer Gateway has good information and links available through a number of government resources.
- Consumerworld.org features links to consumer-focused information and empowerment sites on hundreds of topics, including housing.
