First-Time Home Buyer's Checklist

So, you are all set to buy your first home. This is a monumental step and one of the biggest investments many people will make. Before you set out house hunting, you will want to make sure you have covered all your bases and have a good start on this major project.

#1 -- Get a Real Estate Agent

Rookies will try to go it alone, but if you are smart you will take advantage of the skills and street smarts of a real estate agent. The most important advantage of this is their perspective of the market and how to find true value, or the best value for you. You could fall in love with a home way beyond your financial capacity, or pay top-dollar for a home with zero market value.

But a professional guide can steer you clear of these problems and guide you directly to the options best for you. Furthermore, your real estate agent is no cost for you. You can get all the advice you want at the expense of the home seller.

#2 -- Talk to a Mortgage Lender

There is an advantage to finding the real estate agent fist. Because you will need to find a local lender, your real estate agent can make some good recommendations on which lenders to work with and which to avoid. Get a few recommendations before continuing your search. 

What you hope for is pre-approval. To get this, you need submit all the paperwork you can that will allow the lender to decide how much you can receive and what your interest rate will be. A good mortgage lender will work with you to decide which loan suits your needs the best. 

#3 -- Improve Your Credit, If Possible

Your credit score will be looked at by your lender before they give you a loan. A perfect score is 850, but anything higher than 760 will ensure you receive the best interest rates possible. If you see that your credit score is well below the acceptable mark, or you would like to find out what the best interest rates for you are, you can take some steps to improve your score. 

Remember that this cannot be accomplished overnight. Nevertheless, by waiting the additional few months you can improve your credit score and gain a better chance of getting the home you really want.

#4 --  Decide Where You Want to Live

You can then work with your real estate agent to look over the best home options for you and your credit score. Take into account all the important questions when deciding on a home, such as amenities in the vicinity, nearest burger joint, or all the other features important to you. There is a wealth of information online at sites like realtor.com and many others. 

#5 -- Don't Damage Your Credit

Remember to keep your credit line and finances clean and disciplined. If you go out and buy a pickup to match the house and a yacht for the pickup, you could throw your financial plan off kilter right before the underwriting actually finalizes it. The underwriting is not completed until after a few days have passed since the closing. So, stay frugal and smart until then, at least. 

Finally, taking the time to prepare and go slow is the best approach to buying a home, don't allow desire or pressure to rush you into a decision you will soon regret. By adhering to this checklist, you will give yourself a better chance of moving into the home you love very soon.

Oh, and while you're here, please take a look at some of our select home options.