Homebuyer Tips

Sit down with a mortgage or lending professional and get pre-qualified to determine what price range you should comfortably stay in. Do this before you even start looking. Don't worry about getting pre-approved at this point; you can do that when you find a house you want to make an offer on. Right now, all you're trying to do is figure out what you can qualify for and how much home you can afford.

Work on your credit rating. When you ask a mortgage broker to pre-qualify you for a loan, you'll learn your credit score, if you don't know it already. If it's below 700, then you have some repair to. The lower your score, the higher your interest rate will be on your mortgage. Don't waste your time with for-fee credit repair companies; instead, look at steps like paying off credit cards and student loans, paying your bills on time and get a copy of your credit score to correct obvious errors.

Figure out how much home you can comfortable afford. Just because you can qualify to buy a $350,000 home doesn't mean you should if it will make you a slave to your mortgage. Look at your monthly housing expenses, total monthly obligations and gross monthly income and decide on the smartest purchase price for you. If you stay in a conservative price range, you'll be able to buy but also comfortably make your mortgage payments and enjoy your home.

Do your homework on the area-crime, schools, businesses moving in and out, etc. Learn what the region is like.

Work with a Realtor®. Despite the profusion of Realtors® in the past few years, they are truly professionals who can guide you through the maze of legal matters and documents involved in buying a house. Remember that the seller pays the commission, so working with a Realtor® costs you nothing but can help you save money and find the right home.

Do a home inspection. Always insist on a home inspection before you finalize your purchase contract, and make sure it's by a certified inspector who you hire and pay for. You want your inspector to be your advocate.