It’s time. After much thought and preparation, you are ready to move forward with the exciting decision to buy a home. It’s a journey, and you will learn a lot of things along the way. Pssst…Do you mind if I give you a head start? As a Realtor, it is very important to me to not only represent my buyer clients and work hard to see their wishes come to fruition, but to PROTECT them. I’m writing this article to help you dodge a few bullets, to avoid disappointments that could have been prevented, had you only known. My hope is that after reading this, you feel informed and confident as you search for your perfect home!

#1 Let Your Money Stay Put
Let’s just get to the meat of the matter: It would be very wise not to make any big purchases or move your money around three to six months before buying a home. You don’t want any mountainous waves in your calm stream of credit. Lenders want to see that you are reliable and they’ll be looking at your financial paper trail in order to provide the best loan possible. Opening up new credit cards, incurring new debt or making big purchases could make it very difficult for you to get a loan.

#2 Get Pre-Approved (or pre-qualified at the very least)
First, let’s discuss the difference between getting pre-qualified and pre-approved. Pre-qualification is the first step, where you give your lender a very basic picture of your financial situation, such as your income and debt. This can also be done over the phone or online and is often free. With a pre- qualification, the lender will assess your information and provide you with an idea of the loan amount you may qualify for. This process does not pull your credit report or give an in –depth look at your actual ability to purchase a home, so remember that this only provides an idea of the amount you might expect to be approved for. Getting Pre-approved is the next step and is much more involved. This is where the lender will do an extensive check on your financial background and credit rating. At this point, the lender can tell you the specific amount for which you are approved, give you a better idea of the interest rate, and-in the seller’s eyes-show that you are one step closer to obtaining the actual mortgage which is a definite advantage.

I can’t stress enough the importance of getting pre-approved-or at least pre-qualified before you start home shopping. First, it will keep you from spending your time looking at-and possibly falling in love with-homes that you cannot afford. Second, it allows you to move quickly when you find the perfect home (especially speedy when already pre-approved). And third, it lets the seller know that you offer is serious. In a competitive market, not having your financing arranged could cause you to lose your dream home to another buyer who went through the proper steps.

#3 Avoid Market Analysis Paralysis
I know it’s hard, but don’t obsess with trying to time the market and figure out the perfect time to buy. Trying to perfectly predict the housing market is impossible and you’ll make yourself miserable. True statement: the best time to buy is when you find your perfect house and you can afford it. Real estate goes through cycles of up, down, up and down again. Analysis paralysis will cause you to miss out.

#4 Budget for the Extra Costs
For a first-time buyer, the costs you’ll face beyond the mortgage payment might come as a surprise. You need to be aware of the other expenses such as property taxes, insurance, utilities and homeowner association dues. Also, preparing for repairs and maintenance is imperative. If you budget for these extra costs, you will save yourself a lot of stress when they occur. And how about the move itself? Will you be hiring a moving company, or purchasing new furniture? It won’t be much fun to live in your dream home if you are financially over-extended. Being proactive with your budget will prevent that.

#5 Get a Home Inspection
I’ll say it again. Hire a home inspector. It could cost a couple hundred dollars but could end up saving you thousands. The inspector will provide unbiased information about the details of the home’s condition with a trained eye that will detect concerns that you wouldn’t even know to look for. Then, you can make informed decisions regarding the home. If the inspector finds issues, you will be in a position to bargain with the seller for lowering the price of the home, or asking the seller to handle the repairs in order for the transaction to continue. Or, if the problems are extensive, you can terminate the deal and dodge the nightmare. If you wouldn’t buy a car without checking things out under the hood, then you shouldn’t buy a house without getting a home inspection. Protect yourself.

#6 Study the neighborhood
Before taking the plunge and buying a home, get a good feel for the neighborhood in which the home sits. Drive by the house at different times of day to see what’s happening in the neighborhood. Without being intrusive, look for opportunities to talk to the neighbors. Find out how far you’ll have to drive to get to the grocery store. If you are a commuter, will you have easy interstate access? Research the schools-even if you don’t have kids. Schools directly impact home value, so this should be an important thing to look into. Given the high stakes of homeownership, it pays to do your homework before making an offer.

As I said before, I truly hope you now feel informed and confident to move forward in your home searching journey. Feel free to contact me with any questions, to find out more about available homes in the areas I service , or to chat about how, as your Realtor, I will protect and advocate for you in your search for the perfect home!