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Step 1
Ask yourself why you
want to buy a home. To
stop paying rent? To start building equity? To
have a place of your own? To move up to a bigger
home or downsize to a smaller home? Next, list what kind of home
you’d like and where
you would like it to be. Be specific. Separate the
“must haves” from the “want to haves”. Consider
area, community, schools, neighborhoods, community
services, and commute time to and from work.
Think about home styles (single level, 2 story,
townhouse, etc.). How much space
do you need now and in the foreseeable future (# of
bedrooms, baths, kitchen size, living/family rooms,
etc.). Do you want a newer or older home to fix
up? Knowing exactly what you think you want makes
house hunting and later decisions easier when you
get into the nitty-gritty aspects of buying. This
is especially true when deciding on “the house”
during negotiations.
Step 2
Get Pre-Qualified!
There are so many loan
programs out there, you need to make an informed
decision on what is right for you. There are many
factors on which to base your decision, such as:
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Do I have money for a
down payment?
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Are the first time
home buyer programs the best course for me?
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How long am I planning
on living in my new home?
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Is my income or family
size going to significantly change in the near
future?
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Should I use
conventional or government backed financing?
Step 3
Select a real estate agent and be represented! By having
a Buyer’s agent, you will have someone representing
YOU and not the Seller. Have your Buyer’s agent
help you set up a plan of action through an analysis
of your needs and finances, the current housing
market, homes available in your price range, and
lenders’ mortgage options. It is absolutely
critical to know your finance options, what you can
qualify for and determine the monthly payment you
will feel comfortable with for the time period you
will be living in the home. Your Buyer’s agent will
also help you when determining a price to offer and
put you in the best negotiating position.
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