To Own, or Not to Own?
Before you begin looking for homes to buy, ask yourself a question: Is owning a home really what I want? Many people want to buy a home to enjoy the equity building capabilities of real estate, but simply are not able to. If your job, personal interests, or anything else will be causing you to transfer your location soon, home buying is probably not for you at this point in time. Also, depending on the state of the economy and real estate market, it may be beneficial to wait for a short period of time before making the purchase decision.

Credit Score
Whether you are looking to rent or buy, your credit score is of utmost importance. Having a great credit score will allow you to buy a home, while an excellent credit score will allow you to buy a home at an excellent interest rate, saving you money over time. Find out what your credit score is now and work to make it better before you buy your home by making sure all of the facts are correct and fixing any errors.

Budgeting for Your Purchase
You can easily narrow home search by objectively figuring out your budget. Once you figure out how much you can afford financially, use some of the many financial calculators online to figure out the true cost of a home. This will show you the listing price range that you should be sifting through to find your next home.

Get Pre-Approved
The pre-approval process should be done before you look at potential houses. The idea is that although, even after budgeting, you may think you can afford a certain level of home, the bank may disagree. Being pre-approved for a loan, even if it is less than you had hoped, is an important step in buying a home because it ensures you and your agent that you will be able to purchase a home.

Make a Wish List
One of the best ways to help you and your real estate agent find the most appropriate home for you is by creating a list of every feature you want. Since finding a home with every feature is unlikely, it is a good idea to prioritize the list. Don’t limit your list to features inside the house, think about community aspects that will increase the resale value of the home, such as good school districts.

Search with a Buyer’s Agent
You do not need a professional real estate agent to help you look for a home, but it is highly advised because of the many benefits agents can offer. They help people buy houses often, so they are not just guessing what to do. Agents also have access to much more information than non-agents through the Multiple Listing Service including homes not listed otherwise and home-specific tax information and selling history. The best part about teaming up with an agent is that he/she will negotiate on your behalf and  will be the communication route between you and a possibly unruly seller.

Make a Smart Offer
Yet another great reason to use a real estate agent is to make a smart offer. A smart offer is one that is knowledgeable and aware of the current economic and market conditions. Your agent will be a great tool during this process because he/she will have access to tools that will provide adequate information for making a smart offer. Making a smart offer will be financially sound from your end without insulting the seller, resulting in a successful acceptance and closing.

Get a Professional Inspection
A professional inspection is one of the most important tasks you can do before you officially purchase your next home. This may sound like the appraisal that the bank will require, but it is actually much more because it will be a test of your new home’s quality, rather than simply what it is worth. Hiring a professional with experience is important so that they will be able to spot problems that the average person could easily miss. Finding any potentially significant problems before closing will allow you to either back out of the purchase or to include a clause that those problems be fixed by the seller.

Points vs. Rate
Depending on your financial situation, you may have a couple of options when officially determining your mortgage rate. The two most common options are to pay a portion of the interest at closing (points) so that you may have a lower interest rate, or to simply accept the higher interest rate and pay the interest as scheduled. If you plan on staying at this home for a long period of time, it is far better to pay the interest now (points); however, if you plan on moving soon, paying the interest at the regular rate will be more beneficial. Be sure to consult with you local bank about the potential options for your loan.

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