Home buying tips - Here are some basic home-buying tips for every homebuyer no matter where you live or what your situation is. The first tip is to make sure you get pre-approved as a first step of the home buying process. Getting a pre-approval from a honest, professional and reliable mortgage advisor is crucial. This will let you know how much of a house you can qualify for, how your credit looks, and what kind of payment you will be looking at on a new home purchase. The pre-approval process is crucial. Your mortgage professional will let you know how much of a home you can qualify for on paper but only you know how much of a payment you can afford each month. Remember it is always better to "own your own home than to let your home own you".

Get approved for a loan prior to shopping for a home. Having your loan pre-approved increases your negotiating power.

Compare the materials the home is built from. A brick home will require less maintanence and generally be worth more then a wooden sided or vinyl sided home.

If you have access to a computer use it to your advantage. Go to different sites on the Internet and view the homes for sale before you waste time just driving around.

When you are shopping for a new home, be sure to not go out and make any major purchases. Once you are preapproved for a new home, the worst thing you could do is change you current sutuation. If you are also looking to purchase a new car, then wait until you have closed on the new home. Any major purchase, could increase your debt to income ratio (DTI), and unqualify you from purchasing your new home.

Make sure you research the type of house you want. Do you have any health problems that would hinder you ability to climb stairs everyday? Do you prefer the low upkeep of brick homes? Things like this will matter to your long term happiness with the home you choose. Always let your Realtor know the key things that are important to you so they can narrow the search down to only home that will fit your preferences.

When you find a house you like, take a look at it during different times to make sure you like the area. Check it out durring a week day, an evening, a weekend, etc. If you want to find out if there are other families or children in the area, go in the afternoon around the time the busses go through.

Try to pick a modest home in a good neighborhood rather than a large, lavish home in a less desirable neighborhood.
Remeber, the properties in closest proximity to your home will play the largest role in the appreciation (or depreciation)
of the property.

Be willing to work with For Sale By Owner properties. Often you can find a property that is below market value when you subtract the realtor fees. This assumes the seller doesn't pocket all the money saved!

When looking to buy a home not only make sure you don't make any new purchases or take on any new debt but do not be tempted to utilize any buy now and don't make a payment for 2 years or any buy now, pay later deals. These may seem very tempting especially if you see a great deal, which always seems to happen when you are buying a new home, but a lender will still require this to be added to your debt to income ratio. If you can not show proof of what the minimum payment is going to be on one of these deals, generally the lender will require 5% of the balance to be used for a payment to include into your debt ratio. This can ultimately affect your approval, your rate or both. So wait until you get the house and you have closed on your loan to go out and start buying.

Do not change jobs unnecesarily, unless for a higher position and higer salary. Lender banks do not like to see recent job changes, which usually translate to less job securities.

Be sure to research the area you intend to live. Knowing what amenities are available to you within a reasonable distance will save you frustration later. Knowing what is around you is very important; check crime statistics, sex offender database, school reports, and any other related report about a neighborhood you plan to move to.

What to consider when buying a home - What should you consider and what factors are important when you are looking to buy a home. One item that should be important is the school district you will be moving into. If you have children that will be attending school this may be a major determining factor on where you decide to move. Obviously you would want to try and pick a school system that ranks well and will provide your children with a quality education. Consult your local loan officer to find out information about school systems and to help with all of your mortgage needs.

Many states not only rank schools based on a number of factors, but make the reports available online. Scanning many schools report cards online can save you a lot of time compared with calling each school to get a copy of the report.

Another thing the borrower should research is future home value potential. The neighborhood might be quite and crimeless. However, properties in some areas actually depreciate over the time. Ask your agent if he could provide the history of the property appreciate in the area you looking to purchase your dream home.

When you have finally decided on a new home it is time to order a home inspection and appraisal. A home inspection will reveal any material defects in your new home and should give you a good idea as to which systems need attention or repair. The appraisal will usually be ordered by your loan officer and will determine the Fair Market Value of your home. The appraisal will analyze the chain of ownership and recent sale history as well as provide comparable homes in your area of similar size, age, and build style. Both the appraisal and home inspection offer 3rd party opinions and should be carefully studied prior to taking ownership of your new home.

What to expect when buying a home - There are many things a consumer should expect when they are looking to buy a home and especially their first home. One thing you should expect when buying a home is that you will have to obtain a mortgage for the property. While there are a very few people out there who do not need to obtain a mortgage and can afford to pay cash for their homes, most consumers will need to obtain home loan financing. A mortgage is a loan that uses the house as collateral. Typically many mortgage loans are for 30 years and there are tons of home loan programs that are available to choose from, such as an ARM, a fixed rate, stated income documentation, balloon loan, etc...

You should expect to purchase home owner's insurance that is good for one full year. Most lenders will require a one year's paid receipt before the mortgage can close. The cost of the insurance should be added to what you are expecting to pay in total closing costs. You should check with the insurance company that you have all of your other insurance with. Often times, they will be cheaper because you have so many other policies with them.

Another item that is often overlooked when buying a home is a home inspection. Although is not necessarily mortgage related, a home inspection is well worth the investment. A home inspection is a very in depth analysis of the condition of the home you have selected. It is very different than an appraisal which is just an opinion of value. The home inspection will uncover problems that both the seller and real estate agent may not be aware of or may not have disclosed. It will also give you a bargaining chip to negotiate a lower sales price if the home inspector discovers a needed repair.

One cost most home buyers do not account for is the cost of all the personal touches you will want to add to your new home once you move in. It is not uncommon for people to spend hundreds or even a couple thousand dollars in the first couple of months in a home with basic cosmetic changes. Things like, painting, changing kitchen cabinet hard ware, wall papering, tools, window treatments, rugs, gardening supplies, new bathroom fixtures, etc. can add up fast.

Remember when you are buying a home, especially if this is your first home, you will need to take care of the exterior of your house. This will include the landscaping, your lawn and maintenance, siding on the house, and many other items. If you do not already have a lawn mower you will need to consider buying one. There are general gardening and landscaping tools that will be very helpful in maintaining and creating a lovely yard and exterior appearance.

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