Congrats on your decision! Here’s where to place your attention and efforts next:
• Credit. Now’s the time to analyze, correct, repair, pay down [Recommended: Clean Up Your Credit with 3 Practical Tips].
• Savings & Finances. Evaluate what you can comfortably afford to pay monthly and how much you’ll need as a down payment. You may need to establish a savings plan and create new spending habits to support your savings goals. The sooner you have a plan in place, the better.
• Documents. Make no mistake: the homebuying process requires a LOT of paperwork and documentation. Work with your realtor and financial institution, or do some research on your own, and start gathering documents you may asked for. Documents may include bank statements, tax returns, credit reports, leases, and much more.
• Research Funding Options. It’s in your best interest to not only find the best mortgage rate, but also investigate local, state, and federal programs that help homebuyers. Your realtor should be able to help you navigate popular programs like FHA and VA loans, among others. [Recommended: Tips for Mortgage Loan Shopping and Take Advantage of First Time Homebuyer Programs]
• Find a neighborhood. Pej Barlavi, a real estate broker in New York City, advises, "Many neighborhoods are different and change from one block to another, so the purchaser should be aware of what their money will get in their favorite neighborhood". Research and visit areas to select a future home that best suits your needs. For helpful tips on picking a neighborhood, check out 7 Tips for Choosing Your Next Neighborhood.
• Hire a professional realtor. “While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process,” says Realtor Eli Ristine of Pan Florida Realty.
The homebuying process may be a daunting one; start with this hit list and work your way from there. You’ll find that arming yourself with information, being prepared, and having the right realtor may be among your best assets.
