Step 1: Are You Ready?

Do You Know What You Want?
Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?

Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting your local Realty Experts REALTOR®.

Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) Typically today’s homebuyer needs 20% down and a new loan for the balance.
In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan).

Several Community based “First Time Homebuyer Programs” not only allow the purchase of a home with no money down, but also underwrite closing costs.  Government FHA and VA loans are also low down options.

As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with your local Realty Experts REALTOR® for details.

Is Your Financial House in Order?
You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

Article adjusted from Information Provided By: http://www.realtor.com/home-finance/buyers-basics/guide-how-to-buy-a-home.aspx