Tips for Home Buyers:

1. Make sure you are ready, both financially and practically, to own a home.  Are your finances in order?  Is your credit good?  Do you have enough cash flow to meet your monthly expenses and taxes and insurance?  Do you have enough money for a downpayment, closing costs and home maintenance? Do you have enough to pay for unforeseen maintenance expenses such as fuming or HVAC emergencies?  Do you have low or no other debts?  Is your income stable?  Can you qualify for and afford a mortgage (if necessary), property taxes, insurance, and other expenses?  Do you plan on staying in the home for at least five years (barring unforeseen events)?  Is the home you are considering suitable for the needs of you and your family for the foreseeable future?  Do you have an emergency fund that will cover at least three months of expenses?  Are you ready to handle the upkeep (either yourself or through hiring help) that a home requires?
2. Use a mortgage calculator to determine what your home will cost.  Be sure to factor in other expenses including property taxes, insurance, maintenance costs, and utility (heat, water, electric) bills. 
3. Know your credit score.  You can obtain your credit score free from annualcreditreport.com and/or freecreditreport.com
4. If you need financing, talk with lenders about the maximum mortgage amount you qualify for.  Obtain prequalification  and a preapproval letter stating the amount you are eligible for.  A prequalification is an estimate of the amount of home loan you can get based on an informal evaluation of your financial information (income and other information).  A preapproval letter is an official document from a lender that specifies exactly how much the financial institution is willing to loan you based on your financial information (W-2’s, bank statements, pay stubs covering from sixty to ninety days, proof of other sources of income (including documentation of any gift money), ID, social security number, debt information, income tax records, at least two years of previous addresses, names, addresses, phone numbers, and dates of employment for all employers for at least the last two years, business tax returns if you own a business, roof of pension  income (if applicable), three months of investment and retirement accounts, documentation correcting any credit report errors, and credit score. A preapproval letter may only be valid for sixty to ninety days. Have your financial paperwork (bank account statements, a month of pay stubs, tax returns and W-2’s for at least two years, proof of one year of rent payments, rental reference and lease, documentation of current loans that you have, proof of current income, length of time at your job, for example) available.  Your real estate agent and/or seller will typically require a preapproval letter or letter verifying that the required funds are available.
5. Save for closing costs, downpayment and other expenses (loan application fees, appraisal fee, prepaid expenses (property taxes and/or insurance), attorney fees or title insurance expenses, inspection expenses, escrow fees, points (if applicable),…) of home buying.  According to allow, closing costs vary depending on your lender and location, from two to five percent of the purchase price of the home.
6. Avoid making any large expenditures after preapproval and prior to purchasing your new home.
7. Are you a handy person who is looking for a fixer-upper?  Do you have the income/savings to cover the related expenses?
8. Make a list of what you are looking for in a home (number of bedrooms, home office, garage, etc.) making sure to note what is a priority.
9. When choosing a location, think about such things as location desirability, what school district you are in, safety of the neighborhood, distance from medical care, and employment (if applicable), restaurants, grocery stores, bars, churches, shopping, parks, green space, amenities, traffic, parking, and whether or not the home is part of an association that requires association fees.
10. Inspect the property, flush the toilets, turn the faucets on and off, make sure you know what appliances go with the home, make sure you know the age of the roof and appliances.  Hire a property inspector.