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Are you ready to buy?

Check your credit score

Your heart says "yes," but what does your bank account say? You can find out by running a credit check first. This will give you a good idea of the rates lenders are likely to offer you.

To learn more about checking your credit history — for free — please click here.

How much can you afford?

If you're a first-time home buyer, it can be difficult to gauge your price range. Many times, people can actually afford more house than they initially believe.

How much should my down payment be?

The short answer? The more the better. If you can put down 20% or more, you'll save on PMI costs. But if you can't swing that much, don't let it stop you from applying! Lenders realize that many of us can't afford the traditional 20% down.

Now there are many different types of home loans. Some require only a small down payment. One of these may be right for you.

But don't totally drain your bank account. Leave yourself some breathing room. You will likely need some free cash for decorating, appliances, landscaping or more. Remember, there are closing costs to consider, too.

Closing Costs

Closing costs are the fees you pay at the end of your home purchase. These can include miscellaneous title, legal, realtor and lender fees. Some are negotiable, some aren't.

It's important that you pay close attention to the closing costs. If you don't understand a fee, ask. Pay particular attention to any added charges or last minute surprises. Legally, you must receive a written good-faith estimate. If the lender strays from this, demand to know why.

How do I find a home?

After you've decided upon where your house should be, it's time to settle on the home you need. Before you start looking, narrow down the essentials. Whether there is a pool or two-car garage, these details are entirely up to you. Then, follow up with the features you'd like to have, but aren't deal-breakers.

After you've finalized your list and everyone's happy (within reason), present it either to a buyer's agent or keep it handy for scouting. This way, you won't waste any time viewing homes without that kangaroo-boxing pit your spouse simply must have.

So where should your search begin? You have several options.

  • MLS (Multiple Listing Service): This is a service provided by real estate agents. It lists homes for sale, and can easily be accessed online.
  • The Internet: The World Wide Web has vastly made searching for homes easier. Take a look around. Some sites even offer virtual tours, which sure beats heading out into the rain!
  • The classifieds: The old tried and true. Don't assume every seller is online, though. You may be passing up an excellent bargain. Act fast. You won't be the only person out there searching for a home.
  • A sign in the yard: Perhaps the most low-tech option out there, but one that works when purchasing a home. Just tour your preferred area and look. You can eliminate guesswork by seeing if the advertised "Lil' Charmer" still has its roof.
Home Buyer Tip

Get pre-approved before you make your first offer

Your negotiating power increases substantially when your financing is pre-approved. In fact, many sellers will not work with potential homebuyers unless they are pre-approved.

Get Started!