Top 10 Things to Know Before You Buy

A lot of pressure is being put on potential first time home buyers by everyone involved in real estate and finances, we don't want anyone to miss out on the $8000 tax credit! Knowing if you are really ready to buy is important; here are 10 things to know and think about now, before you start house hunting.

1. Don't Buy if You Aren't Ready to Settle Down. You are going to need to stay in the same house for 3 years to keep the tax credit, so be ready to commit to that time!

2. Check Your Credit. Make sure that your credit history is clear, and that you are current on all payments and student loans.

3. Know What You Can Afford. Use an online calculator to get a rough idea of your price range.

4. You Don't Need to Put 20% Down. Advice from parents and bosses can be good, but they often think that all buyers have to have a 20% down payment. That is no longer true, many loan programs work with 3.5% to 10% down. You can no longer expect 0% down though, those days are long behind us!

5. Find the Good Schools. Even if you don't have kids, plan on having kids, or want kids, buy in an OK district, when you go to resell it will make a difference, and the whole neighborhood usually reflects how the schools are doing.

6. Hire A Pro. Realtors spend all day every day working in the market and can help you get a great deal. We are know the buying process, which has multiplied in complexity in the last several years. We also help buyers think of things that don't normally come to mind.

7. Points vs. Rates. Talk to a mortgage broker about what is appropriate to consider in your specific situation.

8. Get Pre-Approved First. The first step in buying house is to actually go turn in all your financial information to a mortgage broker and get pre-approved, not just pre-qualified, for a mortgage.

9. Know the History of the Market in Your Target Area. This is where a Realtor comes in. In addition to just having general knowledge of the areas market, we do specific research on the street, blocks and neighborhood where you want to buy to know what a good offer is.

10. Home Inspectors are Your Friends. After you have a deal for a house, you have to, have to, have to get a home inspection. It's not required by law, but unless you are planning on tearing down the house, it's a good idea to spend a few hundred dollars and have some one tell you exactly what is going on with the property. Also, the report is the basis for asking for repairs from the seller, and the more costly they are the more likely the seller is going to want to have an inspection report to show where you got the idea that you need a whole new heating and air conditioning system!