Tips for Home Buyers Buying a home may sound overwhelming, but if you follow the tips below and do a little bit of organizing up-front, You'll save yourself a lot of time and stress later on!

FIGURE OUT WHAT YOU CAN AFFORD:
You might be surprised! Try out the mortgage calculator. You could afford more of a house than you think, or you may not be able to afford what you thought. Either way, there are many programs available today to help you purchase a home.

MAKE A LIST OF WHAT YOU MUST HAVE:
Decide what neighborhood you want to be in and what's most important to you. Find the property that matches most of your needs. You may not have the color paint you like, or the exact carpeting you'd prefer, but does the house meet your needs? If you're concerned with a good investment, try to find the worst house in the best neighborhood. The other houses will bring the value of yours up. Make sure to communicate with your agent as to what is most important to you.

GET "PRE-QUALIFIED":
Generally, when an offer is presented to a seller, the seller will want to make sure that the buyer is fully qualified before working with them. The seller is taking a huge risk by taking their property off the market with an unqualified buyer. You can simply call a mortgage broker or bank and ask them to pre-qualify you. They can usually do it within 10 minutes and you have no obligation to them for doing this.

With the help of a lender of your choice you can find out:
1. How much you can afford to pay per month.
2. What sale price of a house you can realistically afford.
3. How much loan you need and can get.

This early determination, based on your financial situation and the current local market conditions, can save you lots of time and grief.

SHOP AROUND FOR A MORTGAGE:
There are available many different types of mortgages, many different interest rates, terms and discount points. Don't be afraid to contact more than one lender to ask questions.

BE PREPARED WHEN YOU VISIT YOUR LENDER!
Be sure you're willing to proceed before you pay the up-front costs of an appraisal report and a credit report. You typically pay for these reports when you first apply for your loan.

You must bring several documents to get the ball rolling, including:
1. Your social security number.
2. Your most recent pay stub showing your annual earnings.
3. Your W-2 tax forms for the past 2 years.
4. The names, addresses & phone numbers of your employersfor the past 2 years.
5. Account numbers & balances of your checking account, savings account & any other accounts you have.
6. A list of any assets you currently own (bonds, stocks, etc.).
7. A list of all your creditors, including current balances& your monthly payments.
8. Current & previous addresses you have used.

FIND YOURSELF A GOOD REAL ESTATE AGENT:
Someone that you feel you can trust and has your interest at heart. In addition to helping you find just the kind of home that fits your budget & needs, your agent will guide you through the entire process of buying your home. The best part is that it's absolutely free!

MAKE AN OFFER:
When you've found the home you like, make an educated offer. Ask your agent to pull up "comps", meaning comparable properties that have sold in the area. Just make sure you're comparing the same type of property, i.e. waterfront to waterfront, similar square footage, remodeling done, etc. Ask your agent for a "CMA," a.k.a. comparative market analysis. This is similar to an appraisal, which will tell you what the property should be worth in today's market. You will also have to take into account the current marketplace. Are the values rising, declining, or remaining stable?


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NEGOTIATE:
Be prepared to negotiate! Most sellers leave a little "room for negotiation" in their price. Ask your agent what the average list to sale percentage is. Some properties may be "priced to sell," meaning that there is not much room for negotiation. Some homes may be overpriced, and some may actually be underpriced! The CMA will help you greatly to decide what to offer.

STICK TO DEADLINES:
Once you've both come to an agreement, be sure to adhere to all of the deadlines contained in the contract. Your agent should remind you of all of the deadlines and follow-up with your lender, inspector, closing agent, appraiser, and surveyor (if needed) and make sure that everything gets done in a timely manner.

PACK:
Start packing!
Notify all utility companies of your change in service approximately 5 days before closing. Your closing agent will tell you the day before closing exactly how much you'll need to bring to closing in the form of a cashier's check. (Click here for more info.)

TOP NINE MISTAKES HOMEBUYERS MAKE
1. Don't buy a home until you have sold your current home - Unless you are willing to make two mortgage payments.

2. Don't look at houses you can't afford- After you have been looking at homes out of your price range, it seems that nothing else is quite good enough. So figure out how much you can afford ahead of time.

3. Don't move in a neighborhood you know nothing about- Spend some time researching the neighborhood you want to move in to.

4. Don't buy the first house you see- If you like the first house you see, don't be tempted to make an offer right away, look at, at least ten other homes before you make that offer.

5. Don't spend more than you feel you can afford- Even if you qualify for a larger mortgage, stick with what you are comfortable with.

6. Do your home work - When a house comes on the market you really like, be ready to make an offer. It is a heartbreaking to find a home you really want, but lose it because you were unprepared to make an offer.

7. Don't buy the wrong size house- Try to look ahead 4 to 7 years, will that house be big enough for you? Are you planning to have more children? Is there a possibility that your elderly parents are going to move in with you? Think about that, and plan accordingly.

8. Don't buy a house that is difficult to resell- If a house has been vacant and for sale for a long time, find out why.

9. Make sure you get the right mortgage for your situation- Estimate how long you think you will live in that home, and then choose the mortgage that will give you the best terms.

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