1. Get your credit score up.
If you plan to finance your home purchase, check your credit history, especially if you’re a first-time buyer. That way, you can correct any errors, and take measures to boost your credit score.
2. Get pre-approved for a loan.
95% of first-time homebuyers and 86% of repeat buyers financed their home purchase. Source: NAR Profile of Home Buyers & Sellers 2013. Early in your search, meet with a mortgage lender who will take a look at your credit history, your savings and investment statements and your current financial situation, and give you a better picture of what you can afford and the financing options available.
3. Decide on your budget.
Whether you’re financing your purchase or paying cash, it helps to establish a budget. This will help you focus your search on great homes within your price range.
4. Make a list.
Buying a home is a process of elimination, not a process of selection. Make a list of your ideal home’s must haves and deal breakers. This will help you narrow your search so that you can find a home that fits your current and future needs.
5. Think about resale.
The average homeowner lives in their home for nine years.* While you may purchase your home as a long-term investment, keep in mind that you may need to sell it one day. Consider the homes resale value when you’re looking at properties.