Checklist for first time home buyers

Things you should do before buying a home

Buying a home is a complicated process that isn’t all that well understood by people who do not work in the real estate industry. And why should it be? Few people buy a home more often than once a decade, if that. The process involves, banks, governments, real estate agents, property appraisers and title companies. It’s long and involved, and it can be difficult for first time buyers to just jump into the process and make sense of it.

Still, nearly everyone buys a home at one point or another in their lives, and sooner or later, you will have to try to make sense of the process. That being the case, it would probably be helpful to have a bit of a checklist so that you can understand what you need to do and what will be expected of you. If you follow the list, you may find that the process goes a bit more smoothly than it otherwise might.

Here are some things you should do before buying a home:

• Check your credit and fix it if necessary - Unless you plan to pay cash for your house, you will have to borrow money. Borrowing money is all about demonstrating to lenders that you can be trusted to pay the money back. After all, the lender will probably be entrusting you with several hundred thousand dollars. Check your credit report and your credit score with the major credit bureaus. If you have delinquent bills or unpaid debts, clear them up and pay them off. The sooner you do that, the more likely you are to obtain a loan at a favorable interest rate. You should begin this process six months to a year before you plan to buy.
• Get pre-approved for a loan - That means going through the entire application process in order to determine how much you can borrow. It does not mean having a casual conversation with a lender who says, “Based on your salary, you could probably borrow x amount of money.” It means formally going through the process. By the time you are done, you will be approved, and when you finally decide which house to buy, the paperwork involved will be minimal, as will the amount of time required to wrap up the sale.
• Look around - You may wish to look on your own or you might wish to work with a real estate agent. Keep in mind that agents work for sellers, not buyers. You might also wish to do research on the Internet, as more and more houses that are for sale are being listed on the Web, complete with virtual tours that will allow you to see what the house looks like without having to pay a visit.
• Buy it - Once you have found the home of your dreams, you can sign the paperwork and buy it. You may wish to have an attorney look over the paperwork. The small amount of money that you might pay an experienced lawyer will more than justify itself should he or she find a problem with the sale.

Buying a house need not be complicated. Just follow the simple steps above.