Home Buying Tips

Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

Before beginning the home search talk with a lender. You want to make sure that you're searching for a home in the appropriate price range. Taking the extra step of getting pre-approved for your loan will make you a stronger buyer. Your loan approval will demonstrate your level of commitment to the seller.

Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

Get help. Consider hiring a buyer’s agent. Unlike the listing agent, whose first duty is to the seller, a buyer’s agent is working only for you. And a buyer’s agent is paid out of the seller’s commission payment, so there is no cost to you to have a buyer's agent working for you.

Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion. A good agent should patiently guide you through the process with experienced advice.

Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

Be picky, but don’t be unrealistic. There is no perfect home.

Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage term that suits you best.

Working with an agent or lender you don’t trust. It’s absolutely necessary that you feel comfortable and confident with the integrity, knowledge and the skill of your agent and lending professional. Don’t wait until it’s too late to realize you’re working with the wrong people.

Signing papers without understanding them. You will be asked to sign many documents and you need to be aware of your obligations and responsibilities. Ask questions about items that you find unclear. When you're purchasing a home, there are no dumb questions.

Buying a home without a professional home inspection. A home inspection is like a physical exam of the property that is followed up by a written report. You need a true professional to do the inspection. It’s important that you are present at the inspection so that you can view the process. Keep in mind that this is not a guarantee of condition. The primary purpose is to make you aware of what you are purchasing. Home sellers are not required to make requested repairs, but some will. Be sure that your purchase agreement includes an inspection contingency, and if possible get a warranty from the seller to cover defects within one year.

Taking someone’s word. Be sure that you have everything that you have agreed upon with the seller in writing. Leave nothing for interpretation. You don’t want to rely on working things out at a later date. Even with the best of intentions, something could be misunderstood.

Unrealistic expectations in the home buying process. Remember the importance of flexibility in your transaction. Price is only one of the elements of an acceptable offer. It’s best to be prepared and open to other terms and conditions, such as the length of escrow, move in date, etc. Also remember the need for flexibility can change depending on the marketplace….is it a buyer’s or seller’s market?

Reprinted with permission from REALTOR Magazine Online. ©Copyright 2003 by the NATIONAL ASSOCIATION OF REALTORS. All rights reserved.