Ok - you are ready to buy a home - now what...

I know this takes all the fun out of beginning the home buying process, but all the better to get this part out of the way...

What's the first thing you should do when you are ready to buy a home?
Get preapproved by your lender.

I know what you are thinking - boring - paper work - no fun -but this is really a great idea and it can go a long way towards achieving your ultimate goal of finding the right home in a reasonable time frame.

Your lender will help you to know exactly what your price range is which will help narrow the field of homes for you and your agent to review. Not to mention - there is nothing worse than finding the exact home you want and then finding out that the bank will not finance it's dollar amount.

The process is fairly simple and can typically be done over the phone. First if you don't already have a lender that you've worked with I would recommend that you ask friends and family who they have used in the past for their home loans. Word of mouth is usually a great way to find a good local lender. Bank or Mortgage Broker is no matter - just make sure it's someone with a good reputation for good service. Once you've decided who you would like to work with make sure you have all your ducks in a row. You will need your social security number, current address and any former addresses over a 5 year period, name, address, phone of current employer, 2 months bank statements, & 2 most recent income check stubs. This will usually do the trick. If you are self employed you may need copy of two years tax returns. Be informed about current rates, ask how much closing costs are and ask if you are being charged any points (a point 1% of the total loan amount) to reduce the rate. All of this should be offered to you on a Good Faith Estimate (GFE).

Once this part is done you can move on to the fun part - finding your new home!

Let's get started!

Click on the link below to print your own Wants Vs. Needs Worksheet offered by Freddie Mac. It's a great form to forward to your Realtor so that they know exactly what you are looking for right away. I think it also gives spouses the opportunity to talk and agree on what's important to each of them. It takes a lot of the guess work out and is a useful tool.

Wants Vs. Needs