Home Buying Resources At Your Fingertips

There are many experiences that we embark upon for the very first time. First interview. First job. First car. First baby. First home. Inevitably, we come to realize that merely putting these ‘firsts’ in the hands of fate is not how we ultimately want to operate.

Either we do our research, formulate a plan and then execute it to the best of our knowledge and ability, or we rely on the expertise of a professional.
The same can be said about purchasing our first home. There is just too much risk involved in buying a home to not uncover every stone and investigate all avenues before beginning the process.

Fortunately in the undertaking of home buying, we can have it both ways. We can do as much individual research as we like on the Internet AND we can rely on the guidance of a professional Realtor. While the Internet is a veritable smorgasbord of information on buying a home, there is nothing that will match the pool of knowledge and information that your Realtor has access to The combination of these systems will serve to empower your confidence and develop your understanding of the home buying process.

Let’s start with the basics.
Get a copy of your credit report. Go over it well and make sure there are no mistakes. And if there are, you’ll need to rectify them before applying for any type of financing. For information on how to obtain a copy of your report go to www.equifax.com.

Go over your finances and set a budget. Pay off minor debts and do not incur any new ones while going through this period. Develop a household budget and determine the maximum dollar amount that you feel you can afford, and feel comfortable, to put towards a mortgage each month.

Get familiar with types of mortgages. Investigate the different loan types that are available. You can go to most bank websites to view a checklist of the mortgages available from them. They usually outline it in simple, easy to understand terms. www.wachovia.com. Don’t know what amortization means or if you will need an adjustable rate or a balloon mortgage? For definitions of all the elusive real estate financial terms, see www.realestatewords.com.

Become familiar with your local market. It’s important to have a handle on the market because knowing its activity will better prepare you for what to expect in pricing. Your local Realtor is the best source. A good section on local market conditions can also be seen at http://realtytimes.com/.

Search for homes in your area. Again, your Realtor is your best resource. Keep in mind that a Realtor has access to an excellent database, the MLS (Multiple Listing Service), which provides very detailed information not included on the realtor.com website. Also www.realtor.com is the premier source for public access online listings.

Take a seminar on home buying. This can be a vital step. A seminar can, in one fell swoop, identify all that has been outlined above in a matter of hours. They are conducted for consumers who are serious about educating themselves to the fullest extent possible on the process and are proactive in their enterprising. The benefit of a seminar is not just the information that is presented but also the fact that the professionals conducting the class can answer your questions. An invaluable service, since your computer can’t tailor its answers to the many questions that you will invariably have while moderating the home-buying process.

Find a Realtor. However you find an agent, it is a good idea to work with one. Realtors provide beneficial services for the consumer, including providing resources on finding available homes in your price range and area while giving objective and extensive information about each property. They help you negotiate contracts and provide advice on as-is purchases, contingencies, home inspections, deposits and a myriad of other components that come up during the contract phase. Your Realtor can also help you with finance options and identifying lenders for you to speak with. Do not underestimate the necessity of a Realtor. You wouldn’t navigate several hundreds of thousands of dollars’ stock market investment without the help of a broker. Don’t unnecessarily sabotage this big financial outlay by trying to wade through the home buying process on your own. For more information on what Realtors do see “Why Use a REALTOR?” at www.realtor.com.

Secure a lender. After all of these steps have been taken, it is time to become pre-approved. This means that based on your credit and finances, you are given a commitment for a loan from a lender. Pre-approval shows sellers that you are capable of receiving financing and informs them that you are serious about purchasing a home. This process also sets a top limit on the price of the home you can afford. Ask your Realtor or a friend for a referral to one or more reputable local mortgage brokers, loan officers or banks. For more information and for help deciding which lending institution is right for you, see “Should I Use a Mortgage Broker?” at www.realtestatejournal.com

So now you have at your fingertips all of the resources available to educate yourself on the home buying process. Using these tools will give you a sense of empowerment over this seemingly slippery subject. If you become overwhelmed, just take some time to digest all of the material, then return to your task with confidence. The goal is to make the most informed decision possible. Remember, “Education is to knowledge as knowledge is to power”. Own your power in this process and you will surely be successful.