Home buying tips

Here are some basic home-buying tips for every homebuyer no matter where you live or what your situation is. The first tip is to make sure you get pre-approved as a first step of the home buying process. Getting a pre-approval from a honest, professional and reliable mortgage advisor is crucial. This will let you know how much of a house you can qualify for, how your credit looks, and what kind of payment you will be looking at on a new home purchase. The pre-approval process is crucial. Your mortgage professional will let you know how much of a home you can qualify for on paper but only you know how much of a payment you can afford each month. Remember it is always better to "own your own home than to let your home own you".

Be willing to work with For Sale By Owner properties. Often you can find a property that is below market value when you subtract the realtor fees. This assumes the seller doesn't pocket all the money saved!

Try to pick a modest home in a good neighborhood rather than a large, lavish home in a less desirable neighborhood.
Remeber, the properties in closest proximity to your home will play the largest role in the appreciation (or depreciation)
of the property.

Make sure you research the type of house you want. Do you have any health problems that would hinder you ability to climb stairs everyday? Do you prefer the low upkeep of brick homes? Things like this will matter to your long term happiness with the home you choose. Always let your Realtor know the key things that are important to you so they can narrow the search down to only home that will fit your preferences.

When you find a house you like, take a look at it during different times to make sure you like the area. Check it out durring a week day, an evening, a weekend, etc. If you want to find out if there are other families or children in the area, go in the afternoon around the time the busses go through.

When you are shopping for a new home, be sure to not go out and make any major purchases. Once you are preapproved for a new home, the worst thing you could do is change you current sutuation. If you are also looking to purchase a new car, then wait until you have closed on the new home. Any major purchase, could increase your debt to income ratio (DTI), and unqualify you from purchasing your new home.

If you have access to a computer use it to your advantage. Go to different sites on the Internet and view the homes for sale before you waste time just driving around.

Get approved for a loan prior to shopping for a home. Having your loan pre-approved increases your negotiating power.

When looking to buy a home not only make sure you don't make any new purchases or take on any new debt but do not be tempted to utilize any buy now and don't make a payment for 2 years or any buy now, pay later deals. These may seem very tempting especially if you see a great deal, which always seems to happen when you are buying a new home, but a lender will still require this to be added to your debt to income ratio. If you can not show proof of what the minimum payment is going to be on one of these deals, generally the lender will require 5% of the balance to be used for a payment to include into your debt ratio. This can ultimately affect your approval, your rate or both. So wait until you get the house and you have closed on your loan to go out and start buying.

Do not change jobs unnecesarily, unless for a higher position and higer salary. Lender banks do not like to see recent job changes, which usually translate to less job securities.

Be sure to research the area you intend to live. Knowing what amenities are available to you within a reasonable distance will save you frustration later. Knowing what is around you is very important; check crime statistics, sex offender database, school reports, and any other related report about a neighborhood you plan to move to.

Compare the materials the home is built from. A brick home will require less maintanence and generally be worth more then a wooden sided or vinyl sided home.