Posts Tagged ‘process’

Once the excitement of finding the ideal property is over, the actual home buying process can be a long, drawn-out affair. Nathan finishes his journey by finding out what happens next once his dream place has been found.

It doesn’t matter what part of the home buying process you are a part of — the buyer or the seller — a real estate appraiser is important to you and necessary to the home transaction. An impartial appraiser will come in and check out the home and property and come up with true value. The appraiser does this in order to protect the seller, buyer and lender, all of whom are involved in a home purchase. Here are some reasons why real estate appraisers are important.

Discovery of the True Value of a Property

A seller will naturally want to take the home and promote how much it is worth. That’s because it will make for a higher selling price, which if it works out for the seller will be more than what was paid for the home. For a buyer, there is a desire for the knowledge that the price is right. And the lender wants that true value to know that the money loaned out is worth it and it is a good business move for them to fund. If a true value was to come in lower, then it might not make for a good business deal for the lender, especially if the home may not sell for a profit in the future.

With the impartiality of the appraiser, all parties can expect an honest finding of the value of the property, which is based on its neighborhood, its market, its improvements and the size of the home.

How it Works for the Buyer

If you are the prospective buyer, you will want to make sure you are getting something of real worth in your new home. With the appraisal, you get to see what that fair price is and from there you can decide if you want to spend money on it. If not, you can always reconsider what you want to pay for the property and could decide not to make the deal.

How it Works for the Seller

If you are a prospective seller, you want to discover the value of your home so you can make a fair selling price for your property when you put it out into the market. If you have a low valued home, you may change the cost of the home or make more improvements in order to increase the value.

How it Works for the Lender

As the lender, the bank is making a gamble by lending money to the prospective buyer. To the lender, determining the value of a home will enable the best possible contract with the buyer. Instead of giving money to the buyer for the price they paid, the lender knows the entire value of the home and can then assess the risk.

And that’s where the role of the appraiser comes in — assuring that the property’s value is right for all involved. Without the home appraiser, the true value won’t be known, which impacts all of the parties who are touched.

“The home buying process can be intimidating and difficult. In addition to wanting to buy the best home possible, you may be worried about the financial aspect of buying your own home or may be confused about all the choices available to you. Experts’ tips on the home buying process can help you buy right. Here’s how:

1) Get an inspector and assessor. Experts agree that hiring an inspector and assessor is essential to getting the best deal. There are far too many real estate scams and unscrupulous sellers out there, so don’t be fooled. An assessor can tell you how much a home is actually worth so that you are not overcharged and a qualified inspector can ensure that you won’t be saddled with unexpected and costly repairs after you move in.

2) Plan ahead. Buying a home in a rush virtually guarantees that you will make costly mistakes. Give yourself lots of time to get familiar with a real estate market and to get your finances in order. As soon as you realize that you might want to buy a home, order your credit report from the credit bureaus and start improving your credit score so that you can get the best possible mortgage rates. Start researching homes and neighborhoods as well so that you can make decisions from a position of knowledge.

3) Get a buyer’s agent. A good buyer’s agent is knowledgeable about local real estate markets and can guide even the first-time homebuyer through the buying process smoothly.

4) Be prepared. Start a notebook that helps you in your buying process. Into this notebook, tuck some measuring tape as well as all the information you need to make your house-buying decision. Contact information for your loan officer at the bank, your real estate agent’s business card, and Polaroids of homes you are considering all go into the notebook.”

What’s Involved in the Home Buying Process

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Even veteran home buyers forget the particulars when pursuing the purchase of a new home. You may craving a refresher, or you may substitute a first-time home buyer who wants to know the ropes.Either way, there are disparate items you’ll desire to be aware of exact before you start looking for enhanced home.

Follow the steps below thus that you don’t frisk a beat in the going. This bequeath ensure you are receipt the very best power possible on the purchase of your spare home.

* Free credit report. Before you carry off started, order your discharge credit report from all three main credit reporting bureaus. They are Equifax, Trans confederation and Experian. You can get a liberate particular from each at.By law, the credit bureaus are required to provide you squirrel a free credit report every twelve months. Your goal will be to make explicit you have the highest possible credit score. A distinguished opinion score consign enable you to be approved for the lowest viable inspire rate.

* Inaccuracies, opposing info or inquiries. Comb whereas your profession reports for any information you perceive as whereas inaccurate, negative information that is incorrect and inquiries that you did not approve. If you bargain items that love repair, circle them again note them considering being inaccurate, heinous negative information or unapproved inquiries. fetch a letter to each of the persuasion reporting bureaus with a copy of the credit reporting pages that apply, along eclipse any support documentation. Send a copy only, and keep the originals for your confess files. The credit reporting bureaus consider 30 days to respond. If you don’t treasure anything that needs repair, then originate to the 4th bullet.

* Ready, set, go! Once the credit reporting agencies make the updates and corrections, you are ready to move forward.

* Home wish list. You’ll want to identify everything that you want clout a home. Include the geographic location, school district or school, square footage, number of bedrooms/bathrooms/garages, symmetry of home (ranch vs. multi-level or others), hardwood floors, attribute of kitchen (eat-in vs. formal) and creature else you can think of. Include amenities groove on a central vac, built-in microwave or heat pump. All this will allow you a basis to begin your house hunting venture.

* Get pre-approved. efficient real estate agents will typically not second you peep for a home lacking being pre-approved for a home loan. adjust yourself a avail drag direction to get the best rate attainable by shopping around. If you request impress rates from several lenders within a ten-day or less window, legitimate usually does not negatively impact your credit win. Check out the company’s reputation. You can consummate a search on the FCC website at www.fcc.gov, grant with the Better force Bureau and actuality the federal Banking Commission to see if you find any negative information about the company. Make direct you get the interest rate money writing, along with ALL fees prior to agreeing to proceed with the loan. Once you find a lender you think you obligatoriness trust, do pre-approved since your homey loan.

* How much are you pre-approved for? Getting pre-approved for a home loan will report you how very you are pre-approved for and will give you a gauge as to how extremely you will want to coin agency a expanded home. Decide how markedly you entrust want to invest overall and how markedly your by oneself payment will be.

* Find a qualified real estate agent. Some people lift to sojourn real estate agents to see what each might conclude in that them. Others rightful long to discharge increase with the top seller of the real estate agency. It’s your limn. If you decide to stopover agents, convenient be sure you have a list of questions and expectations you present to each. Decide on an factor you enthusiasm to use further sign the buyer’s agreement.

* accordingly umpteen homes, so apparent time. Your licensed real estate agent should make sure you with a list of homes that garner your criteria and be plain to take you to shop around. Your fixin’s should also provide you with a comparative market reconsideration for each home you are interested in, inasmuch as that you may set about a competitive offer.

* Other offers? Once you nail down to make an offer on a home, investigate your agent about whether they know the seller’s doer – bankruptcy, estate sale, etc. Also, ask if well-qualified are any other offers, liens, easements, zoning changes and neighborhood crime.

* Scrutinize the Seller’s Disclosure. Make affection of how old the following are: roof, central heat/air, electrical and plumbing. Depending on the age and condition of each, these may be bargaining points in negotiations.Visit Here Now http://commercialrealestate-remax.blogspot.com

If you are planning to purchase a house or property, there are certain procedures in real estate industry that you have to learn before you venture into any transaction.  Home appraisal means the process used in a certain transaction to secure the welfare of two parties, the seller and the buyer.  Hence, before making any decision, it is best to follow the standard operating procedures to be able to achieve a successful result of your investment.

Home appraisal or commonly known as real estate appraisal or property valuation, is a process of assessing a certain property in order to identify its quality and right market value for sale.  It is essential to determine what the requirements of a certified appraiser are.

People assigned to appraise or the home appraisers go through an internship and extensive coursework to be able to get the certification imposed by various states under the real estate industry.  When you undergo the home buying process, valuation surveyors are considered to be third parties who do not have any financial relation with any of the parties involved in the deal.  These people are well trained to perform accurate and reliable appraisal reports that how the market value of the property done based on the whole structure of the house, potential issues found on its actual condition and other important related features that the appraiser discovers in his evaluation.

However, there is a major difference between the work done by the property surveyor and home inspector.  These two positions are often misunderstood by most of home buyers.  Basically, home inspectors are reliable individuals who accompany you when you visit the house in order to inspect the actual condition of the property.  They check areas and systems which are possibly problematic and need immediate repair.  These include plumbing, electrical connection, heating and essential parts of the house such as ceiling, kitchen, roofs, attics and a lot more.

Alternatively, home appraisers cover the general issues they may find but do not tackle all the details which home inspectors do.  They provide the whole market value and the expected average sales time of the property.  These people also cover assessment according to the appreciative value of the property based on where it is located.

Knowing how the appraisal method works can also be beneficial to those people who are planning to buy a house.  This will help them in verifying if they are given the appropriate market value by their appraiser.  The two most common methods are the sales comparison approach and the cost approach.  The former is done based on the idea that no two properties are completely the same.  The difference in the market value usually relies on the location of the house.  Thus, even if two properties are similar in its structure, the market value is still different based on the type of location.  One may find it more expensive because it is situated on a place where its appreciative value is increasing while the cheaper property is located on a less desirable place.

As for the cost approach, it applies to new houses where appraisers identify the market value based on the repair costs spent.  There might be damages that need immediate repairs or the structure has some problem areas that must be repaired. 

Home appraisal provides you the right assessment of the whole quality and value of the property to identify if the asking price is right or if you are a possible victim of an overpricing scam.

Home buyers normally look for their dream house and immediately close the deal before it can slip off their hands.  But if such lovely house turns out to be outcast from a not very nice neighborhood full of problems you have not seen, your dream house can be your worst nightmare.

When you transfer into new home, you surely do not have any idea about the kind of community you live right away.  It is beneficial if you perform study before you make any decision in your home buying procedure.

You have to assess the traffic trend that will affect your access to your house.  You need to make sure that the road in front of your home is not usually a traveled route.  Try to drive around the house at various times of the day to identify the condition of your place and the bulk of the traffic along the way.  Spare some time to hang out in the property to feel the place.  You can also try to go your office, to your kids’ school, to the hospital and to the supermarket so you can assess the condition of the road.

Try to meet and greet other homeowners in your community.  Ask the city planners for their possible city plans for the improvement of your road.  Check the zoning of the community and other surroundings to know whether they will require you to reconstruct your yard for their road widening project.

The old residents or the local authorities can give info about the crime rates in your community.  You can check out how far your house from the important community services such as police, fire station, hospitals and other related offices.  Call the offices if you can extend your house in the future and know other requirements for septic or drainage systems.  The local utility offices can aid you with these things.

In some areas the law requires a seller to disclose certain info to the possible buyers.  Realtors give sellers a form wherein they put the detail about zoning, noise, proximity to airports and waste treatment, road widening projects and other possible nightmares that you might encounter if you stay in the area.  Such document will be part in the purchase agreement and the seller is held legally responsible for the details to be accurate and complete.

If you fail to be informed about these matters and will hasten the process of home buying, you will definitely encounter issues in the future.  It is easy to stay away from a deal with unexpected surprises after relocating; you just have to give some time checking your possible neighborhood before you finalize everything.

Items description The Home Buying Process With Charles Kraus IN THIS VIDEO YOU WILL LEARN Why Buy a Home? Seven Reasons to Buy –Including: Learn the tax benefits and personal reasons for buying a home. The Eight Steps of the Home Buying Process: 1.Preparing to Buy – Create a Plan 2.Choose a Real Estate Professional 3.Consult a Home Loan Professional 4.Determine Your Housing Criteria 5.House Hunting and Selecting a House 6.Preparing an Offer and Negotiating the Contract 7.Inspections 8.Preparing for Closing / Settlement Your Host: Charles Kraus Charles Kraus is a veteran real estate agent and Branch Manager for an international real estate company. He has been licensed since 1992 and has helped both home buyers and real estate agents understand the home buying process. Mr. Kraus is a top producing agent in Maryland and as Manager provides counsel, supervision and oversight for the real estate agents in his branch office. Mr. Kraus is a Graduate of the Realtors Institute and the Maryland Association of Realtors Leadership Academy. He is an Associate Broker and Branch Manager for a real estate company in Annapolis, MD. Mr. Kraus has also served three terms on the Anne Arundel County Association of Realtors, Board of Directors and two terms as President of the Distinguished Sales Achievement Club of Anne Arundel County. He has also served two terms as Chairman of the Contract Forms Committee for the Anne Arundel County Association of Realtors. Mr. Kraus and his wife Pat are …

Learn what is needed to process an insurance claim for homeowners insurance in this free video series that will explain all the different caveats of homeowners insurances policies. Expert: Romie Brown Bio: Romie Brown has been an insurance agent for 10 years. He was named one of the top 100 new agents in his company in 1999, 2000 and 2001. He is a 1992 Graduate of the University of Toledo. Filmmaker: Akita McCulloch

Looking at buying a home, especially one of the Atlanta foreclosures? You need to follow a certain process or you meet a real estate agent or the home seller to advise you on what to do. People some times look at the home buying process to be easy, but can somehow complicated, if you don’t do things the correct way. The buyer can also register with Atlanta real estate companies that sell Atlanta homes, stating with them the type of home needed, the amount of money in hand or the mortgage amount that they qualify for, the area or location of the home needed, etc.

The buyer of a home needs to know his/her rights, if the buyer doesn’t knows the rights, then he or she can meet a home or house counselor , who is going to help you if you were to borrow or do predatory leading.

Many people will always like to buy homes, but they will not have enough funds to buy the home. So, if you are not having enough funds, you can ask for a loan. That is, by talking to several loan providers or lenders, also compare the costs of interest rates of the different lenders, and choose the lender who is going to ask the lowest interest rate.
As we said above, if you are searching for a home to buy, you can contact a seller or a real estate agent who is going to tell you what to do. Make sure that you review a copy of the HOA bylaws before you buy a home in subdivision, so that you can review before closing. You need to go to the neighborhood and talk to your future neighbors.

To make an offer, discuss the process with the real estate agent, so as to come to a compromise and hen submit your offer to the seller. If the seller meets with your offer, you may need to negotiate with them until you all agree on the terms of sale. After that then you can put the house under contract.

The home inspector also has a great role to play when it come to the process of buying a home. After the offer of the buyer has been accepted by the sell, is now the place of the home inspector to go and inspect the home. If the home will need much repairs or not and if the location is good. Make sure that you pick a reputable home inspector, preferably one from one of the state association of homes inspectors.

After the home is inspected by the home inspector, you can now ask for home owners insurance, because it will be needed by the lender. Always shop around to get the cheapest home insurance policy possible. So one should be made.

At the end of the transactions you will be needed to sign some documents at the closing table. Make sure you go through the documents carefully before you sign. Ask your closing attorney to fax the closing documents to you one day prior to closing and consider giving them to your personal attorney to review before you sign. Remember that the closing attorney represents the lender in most transactions.

If you have been planning to sell your house I am sure you must have come across plenty of articles based on home selling tips and guides. There is a plethora of advice available on the net and otherwise, so much so that by now you must be quite confused as to where exactly you must start. Infact even the big picture gets so blurred that most of you start wondering as to exactly how the process will progress and how you are supposed to cope with it.

The actual process may differ depending on the area; there are a few general steps that will work well for everyone.

You need to start with some basic preliminary planning. This may not sound like much but this is the first stepping stone that will lead through to the rest of the process. You need to be mentally prepared to hand over your home to another person; similarly you will need to make sure that your home is prepared to be handed over to a new owner. If you want to sell your home because you want to move into a new one, then I hope you know that you don’t have to wait to buy a new home, unless the older one is sold. You can very well buy another house before your current residence is sold.

When you are completely prepared to sell your home, the time has come to appoint a good realtor who will be with you through out this process. You can look around your neighborhood for a good agent or you could look for more experienced agents who have been quite successful in their field. You can meet a few of them before you decide to appoint one of them as your agent. You will need to ask about their marketing strategies and also about the various commissions that are on offer. Make sure that you are really comfortable with this person, as you will have to go through a lot together before the deal cracks through.

You now need to finalize the listing arrangements. There is a lot to choose from, but it is the best to choose a combination where your part is limited to the amount of work you would like to do during the process. Also you may have to think about what each kind of listing will cost you.

Whatever you decide on, remember that the cost of listing is integral to the cost of selling the house and should thus be incorporated in the asking price of the house. Be extra cautious when you decide the price of your house so that you can fix an ideal price. Anything too less or too much, soils the reputation of the deal in the eyes of the buyers. Use a rough analysis to get the value of your home, do not forget to add the expenses incurred during the process.

If the price set is good then before long you will have potential buyers contacting you or your agent for house showings. Incase you are going through an agent, make yourself scarce when the potential buyer comes for a house showing. Incase you are selling the house on your own, then go through the sundry advantages of your home and do not forget to point them out. Think carefully about what you are going to say.

If every thing goes well, you can expect the buyer to make an offer. You may involve an estate attorney here so that everything is smoothened out. Be very sure about what ,the buyer thinks, comes with the house and what is not part of the deal. You may or may not accept the offer or you may like to make a few changes to it.

If the whole thing is acceptable to both the parties, then viola the deal falls through and you are now very much at the end of the process of selling your home.

Many a home buyer has wondered in the midst of their looking chaos- Is this how it is done because this is exasperating? Well to help buyers figure out that the information overload age need not apply to them when looking for and in buying a house, we have detailed the Buying Process for better peace of mind below… less chaos. We will assume for the purposes of this article that you are buying a home, but much of the same advice might apply for any kind of property. This article is written in a state where real estate agents handle real estate transactions, so realize that in some states or counties an attorney is required. Check with you local state officials for any differences that may pertain. Information in this article is not guaranteed to be reliable regarding differences that may exist in different states.

1. Become Educated

If you don’t contact a realtor first, do at least take time to get educated both about the real estate values by shopping online and about getting pre-qualified with a mortgage lender.

Maximize your opportunities to find the right home by eventually sharing your property wants/needs and timeframe with a realtor.

Your realtor can:

Direct you to competent and reputable mortgage professionals to establish your comfortable home buying price range.

Help with advanced search methods or tools.

Help you to understand neighborhoods and home features and their value in today’s market, as well as relevance to your buying needs.

Conduct information gathering and research on specific properties for you.

Create a venue for home buying advice and counseling.

Discuss current market conditions.

Commit to your agent of choice for the best professional service because commitment reciprocates commitment and genuine service, which is maximizing your opportunities.

2. Get Pre-Qualified

Finding the right mortgage lender or bank can be trying. Often times a good realtor will give the best recommendation. While finding a reputable lender to help you establish a comfortable shopping range is always a first recommended step, you do not have to settle on a mortgage lender or bank just yet. But the sooner you know just how much house you can buy, the less time it will take to pinpoint homes that truly meet your needs and budget!!! Also, don’t forget the energy and possible long hours saved from shopping around for homes that don’t meet your needs and budget. Everyone that is sensitive to an economy based on effective use of time and information has experienced getting the ‘food yanked out of their mouth’- this may be no less painful if you completely go it on your own. Insist actually on a pre-approval to include some of the items in #4 below.

Your lender will:

Check your credit.

Determine your debt to income ratio.

Discuss which mortgage product best fits your situation.

Provide a Good Faith Estimate, showing you what your closing costs would be.

Determine what purchase price you qualify for.

Write a “Pre-Qualification” (Pre-Approval if you take extra steps) letter that strengthens your offer on a home or property.

3. Find Your Dream Home

After becoming pre-qualified or pre-approved with a lender, it is time to find a home that truly meets your needs and budget.

Use a local realtors office or internet property search solutions to access “All the Listings”. You can do this by typing into the internet the name of the city (and state, if needed) followed by the words “real estate”. Most local county boards will control how much data gets released onto the internet. Most realtor sites will “serve up” some version of the local Multiple Listing Service containing all the listings. There are also some bigger 3rd party conglomerates that are competing to serve up the data more centrally because of how the information gets withheld or released and based off referral power revenue (to agents) that can be generated. Occasionally, the question of reliability in which the 2nd or 3rd party data gets delivered up, will leave that property search less desirable. Typically, these entities get property data either direct or in a “feed” from the local Board of Realtors in that County. If it’s a direct line, then data can be deemed “real-time”. If not, usually a day or two lag time of new listings going on will be rendered at your interface point of contact search solution. Also, many entities that serve up the data do not have a very friendly search interface console. Most people search until they can find one or two solutions they like. The bigger conglomerates compete with how you as the end user will eventually be connected up with which realtor. Both realtor and conglomerate may compete with the need to withhold enough information to still be able to entice you enough to get your contact information. Often times an individual realtor’s site will give out more data on listings than the big conglomerates because they already have some security of possible representation of business. Each may be earning some of your business and this is how they hope to get to be the ones to represent your real estate interests.

Get set-up on Email Updates if that area has them. Email updates are when a new listing comes onto the market matching your criteria and you get a reference to that listing freshly emailed to you with all pictures and data relative to that new listing.

Select those homes or properties that are of interest.

If possible drive-by the listings to become accustomed to the neighborhoods, styles and curb appeal of your preference homes.

Let your realtor know which ones that you would like to see or know more about and he/she will research the homes you have selected and set appointments for those you are interested in. Please note that the realtor will have showing instructions on each listing you select, which may or may not accommodate your desires of seeing it “right now”. Depending on areas, sometimes a Key-Box will be attached to the home as a way for your realtor to access the home when an appointment was not able to be secured. If this is the case, there is usually still a courteously call to the Seller that is appreciated protocol, so give your realtor some ample time a day or two, if you can, to line things up. If in an area, likelihood abound that many homes of the homes selected are on Key-Box, then less time is required and in some cases immediate showings can be arranged.

Now, your realtor should be competent enough to guide you through getting an offer written and accepted, after which you may need to immediately start on getting a loan.

4. Getting a Loan

Since, the market has been hit hard by the sub-prime market, many people and even Lenders are in a quandary over what is going to surface as the “real deal” in Lending money. Can you look far enough forward and perhaps think about becoming pre-approved, which is stronger than pre-qualified, even before you go shopping? I hope so, because the below is what you are looking at and why do this after all that house hunting work, only to find out you have wasted everybody’s time. Not the least to mention is the seller having had to take their house off the market with no compensation… when you may have been able to save yourself and your realtor all that running around by figuring out first, if you can really get a loan. These are some of the basics you will need in order to obtain financing.

Proof of Income

Employed – 2 year tax returns or W-2, 1 month pay stubs

Commissioned -2 year tax return including 1099 or W-2 and pay stubs

Self Employed – Federal tax return, profit and loss statement, 2 years balance sheet

Retired – social security awards letter

Other income

Rental property – copy of lease

Alimony or Child support – copy of Divorce decree

2 months bank statements

Driver’s license

Social security card

Home Owners insurance information

Bankruptcy information

Proof of Earnest money check

Your lender will:

Verify your information meeting the criteria for the loan

Prepare all the required documents and verifications

Upon a valid contract, submit your package with the appraisal to the underwriters (who re-verify and give approval to release funds for this transaction)

Handle last minute conditions from the underwriters

Once all conditions have been met, the loan is released from Final Underwriting and the true lender is committed to funding the loan.Your realtor or attorney can be checking in with your mortgage lender or bank as performance dates grow close. Such dates might include making sure ny appraisal condition or loan denial deadline is on schedule to be met. Thus, you, your realtor and lender should be working hand-in-hand to ensure that the loan details are being handled and remedied as needed.

Many a home buyer can breathe a sigh of relief knowing that if you follow the “yellow brick road”, along the home buying process that it will land you a home… and there is no place like home!

Before starting the home buying process there’s some basic steps we recommend to help you get the best rates and deals.

Applying for a home loan is important. Most Realtor’s won’t show you homes without a letter from a creditor showing how large a home loan you will qualify for. But ideally, you should work on your home buying project long before you actually apply for a loan and start the process of actually buying a home.

According to a survey taken by the National Association of Realtors most buyers take eight weeks to actually shop for and purchase a home. So don’t panic and think it will take months and months to find a home. It’s more important for you to spend some time on your financial prep work before to ensure the best home buying experience and before you apply for a home loan.
Find Out About Any Home Buying Incentives Available To You

Tom Johnston a local Phoenix realtor advises people to start to talk to a local Realtor as much as six months ahead of time. Tom says, “Most realtors have a good handle on the programs available, and there are a lot of cool programs for the first time buyer”.

For example Johnston says some of the local city governments will offer interest rate or down payment subsidies to buyers that agree to buy a home in certain areas.

In fact, a good friend of mine purchased a home in Peoria, AZ because the city offered her a grant of $15,000 for being a first time home buyer! That translated to a lot less money per month in house payments.

Also governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities. Many hospitals that are trying to recruit and retain nurses, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed at the hospital for several years.

So before you start the home buying process, contact your local chamber of commerce’s or talk to a Realtor to see if there are any incentives in the various cities around you, then concentrate on homes in those areas.
Get Your Credit In Shape: Order Your Credit Reports

Before even thinking about home buying, everyone should order their credit report (from all 3 bureaus). It is imperative that you do this before you apply for a mortgage loan and begin searching for a home. You will want to check the reports for errors now.
It is reported that 79% of credit reports contain errors and it is your responsibility to find and remove these – not the company that put the erroneous ding on your credit in the first place.

If you want to see all three reports you can order them from any number of sources or you can go to our website: http://www.1-800BadCredit.com and follow the link. Don’t forget to order your FICO score too – that isn’t included with your free report.

We also recommend that you protect yourself against Identity Theft. According to the FBI this is the fastest growing crime worldwide. If you know anyone who has had their credit stolen then you know the horrible time you are in for if this happens to you. If you think it can’t happen to you, you’re mistaken. It recently happened to Michael Bloomberg the billionaire Mayor of New York City. It can happen to you also. We have information about this service also on our site – check it out.
Pay Down Your Credit Cards But DO NOT Cancel Any Cards!

While paying down your credit card balances will improve your financial picture and score, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.

Also, when applying for a home loan lenders look at longevity with a creditor as a sign of stability. In other words if you have the same cards for 10 years vs. all new credit in the last 6 months.

Jumping from credit card to credit card does not show the banks that you know how to handle “long term debt” responsibly. Don’t assume you should just get rid of your credit cards because you think you have too many. It will improve your credit picture however to pay the balances down.
Get Your Financial Paperwork Organized

Before you start the home buying process and apply for a loan, collect all the financial documents that a lender will need when you submit your application. These documents will also help you put together a realistic budget and figure out your monthly payments for mortgage principal and interest, plus property taxes and insurance.
Documents To Gather When Buying A Home:

§ Tax returns for last two years

§ W-2 income statements

§ Two most recent pay stubs

§ Most recent credit card statement

§ Most recent bank and investment account statement

§ Divorce decrees and child support statement

§ Your budget (this is very important)
Create A Budget

There is a difference between the maximum payment a borrower can qualify for, which can be surprisingly high in some cases – and the amount you can comfortably afford. Before buying a home and applying for a home loan, figure out how much you know you can afford comfortably each month.

Home loan lenders will typically allow you 50% of your income towards a home. But do you really want to spend that much in payments? Are you leaving something for savings? What if the air conditioner goes out or your car breaks down. Budget yourself ahead of time so that you don’t purchase “too much house.” A good, reasonable budget is as much for your benefit as for the lender.

If you haven’t ever put together a budget we’ve provided you with a couple of simple worksheets here:

Simple 1-Month Budget Planner 12-Month Budget Planner

Don’t be intimidated, it’s actually easier than you think to create a budget and when you’re looking into home buying, it’s more important than ever to know exactly how much you’re spending each month and what you NEED vs. what you WANT.