FIRST TIME HOMEBUYERS

Whether you're a first time homebuyer or a seasoned pro, there are many things you need to think about when purchasing a home. Where, what, why, how much, ...

Getting Started
The first step with buying a home is getting pre-approved. You can get pre-approved with a lender either over the phone, on the internet or in person. Since this is such a large purchase and the level of trust that's required when buying a home is HUGE, I recommend meeting the lender and getting pre-approved in person. You want someone that will be at the closing with you and someone that you trust to work hard if necessary to overcome any obstacles. If you are comparing lenders, look not only at the cost of your loan (compare Annual Percentage Rates or APR's, which include the costs of the loan, do NOT simply compare interest rates) but also look at the level of service and the trust factor. Do you trust this person with perhaps one of the biggest purchases of your life?
Just because you're preapproved for $xxx,xxx doesn't need you need to spend this much. Now, determine how much you want to spend. Take an honest look at your current liabilities, spending habits and your future job stability and future job growth. Pick an amount and a monthly payment that you feel comfortable with.

What to Look For?
Townhome or single family, area A, B or C? How many bedrooms, bathrooms, garage stalls, ???
Time for another honest self-assessment. Each decision maker (i.e., husband and wife) needs to make two lists: a list of seven needs (can't do without) and a list of seven wants. Here's a list of samples to choose from:
# of BR; # of BA; # of BR on one level; # of garage stalls; city; area; school district; distance from family, friends, school, daycare, church or work; fireplace; cul-de-sac lot; type of home (single family-one story, split level, split entry, two story, modified two story, one-and-half story or townhome: quad, one level (upper or lower), end unit, interior unit); age of home, private master bath; room sizes; location of laundry; walkout basement
Now, rank your needs and wants in priority order.
Finally, each decision maker should discuss his/her list with the other's list(s) -- no fighting at this point. This is meant to arrive at a consolidated list of what you will be looking for in your next home. If you can't reach an agreement yet, don't worry. As you look at a few homes, your needs and wants will become clearer but it is important to at least give it some thought before starting to look.

Looking for Homes
It shouldn't be any surprise that over 90% of all people look extensively on line before ever calling a Realtor or setting foot in an open house. As you browse the internet, make notes of what features you like & don't like.
You may want to visit open houses also. This will help you get a feel for neighborhoods and architectural styles as well as help with that needs & wants list. This is also a great way to interview Realtors. You don't need a Realtor to help you find a home but it will sure help. A Realtor will be looking for you full-time and can e-mail you information and homes to take some of the burden off you. The best way to find a Realtor is to ask friends or family if they have someone they trust but another good way is to interview Realtors at open houses--they're a captive audience and you can just walk out if you don't like what you hear.
Perhaps the biggest mistake you can make through this process is talking yourself into a home. The second-largest mistake would be talking yourself out of a home. You'll know the home you want to live in when you see it. The average home-buyer looks at 10-15 homes before buying one. It isn't rare to look at only a few homes or to look at 50 homes. The home has to feel right, it's a lot of money you're spending!
Look at only 10 or so homes each day and try to immediately classify each home as a possible or as a no. Take notes on each home you look at. The features will all start blending together very quickly otherwise. Try to keep this short list of possibles limited to only 3-4 homes.

In two weeks (9/13) - Writing your offer and what to expect at your closing