First-Time, First Steps TUTOR

First-Time, First-Steps TUTOR Quick Tips & Resources

Quick Tips

• Know why you're considering a home purchase for the first time.

• Prioritize with your spouse, partner or co-buyer the most important requirements of your dream home. Address differences and concerns about finances quickly and honestly. Don't find out there's a major disagreement a week before closing.

• Determine which type of home you're interested in (single-family, condo, or multi-family).

• Know what kind of neighborhood or town you want to live in: city, small town, suburbs or rural setting. Do you want to be close to schools? Close to work? What kind of amenities or shopping options are you interested in?

• Create a "wish-list" of what you want in an ideal home.

• Manage the financial part of the process early:

1. Know how much debt you have, and get rid of as much as you can.

2. Check your credit report. Document and correct errors; save copies of correspondence between you and creditors.

3. Use worksheets and online calculators to determine how much home you can afford and how much of a home loan you're comfortable paying off.

4. Consider preapproval, versus prequalification, if you're really ready to buy, and know the differences between the two:

Preapproval--your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.

Prequalification--your lender does a preliminary evaluation of your ability to pay for a home, along with an estimate of your mortgage amount.

Preapproval demonstrates a serious commitment on your part to the seller, and can be advantageous if you find yourself in a competitive bid process.

Checklist

Make a checklist for your major tasks:

• Develop a timeline for the major steps in the process.
• Give yourself time for preliminary research.
• Obtain "real" information.
• Get professionals involved and understand their roles.
• Check your credit.
• Prequalify for a mortgage.
• Consider preapproval if you're really ready to buy.
• Home Buyer Supplies

Build a Buyer's Bag, containing:

• Binders, notebooks, filler-paper and photo protectors
• A camera for photographing neighborhoods, open houses, and ideal homes
• Pocket calculator
• Your research
• Phone contact list
• Map of your target city or town
• Your action list
• Helpful Links

Get educated and learn about the process before you enter it. Helpful resources include:

HUD's "Homebuyer's Kit"

Federal Consumer Information Center

International Real Estate Digest

National Association of Exclusive Buyer Agents

Fannie Mae/Homepath

U.S. Consumer Gateway has good information and links available through a number of government resources.

Consumerworld.org features links to consumer-focused information and empowerment sites on hundreds of topics, including housing.

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