You are viewing the printer-friendly version of Home buying TipsHome buying TipsOne of the first rules of home buying is to know what you can afford. Home mortgage rates are at a historic low and your purchasing power can allow you to purchase your dream home.You should start with getting your credit report and be sure that no entries on it will automatically cause your application to be rejected. You can order your credit report online from any of the major credit reporting agencies. There are a lot of people that find items on their credit report of which they don't have any knowledge. Dispute any false entries to the credit report. Next, check with several lenders and get a pre-qualified. This will entail the discussion of your credit score, your income, and the amount of money you have on hand for a down payment. Based on their criteria the lender will advise you on the amount of money they are willing to lend you. Once you know the price range you can afford, it's time to start checking out the housing market in your chosen area. You should do preliminary searches on the web, newspapers, real estate magazines and open houses. Most people only want a brand new home and they completely over look the fact that the best value is a home that is being sold by owner. The owner has probably already tried the real estate agent route. They are a willing seller that is ready to deal on a personal basis. You do not need a real estate agent to purchase a home. They usually go for top dollar on a home and they represent the seller and have their interest in mind, not yours. If you want an agent, then get a buyers agent. They will represent you in the negotiations, not the seller. Be sure to have the pre-qualification letter from your lender when you decide to make an offer. It will strengthen your offer. A search of the county records will show you what the owner paid for the property and the selling price of similar properties in the neighborhood. Many counties have the search capabilities online. Now you can make an offer, you need to retain a real estate attorney who is familiar with the laws in your state and will ensure your rights are protected. The lawyer will prepare your documentation required to present your offer to the seller and officiate at the closing of the purchase. aa |