Basic Steps for 1st Time Homebuyers

Buying your first home may not be as complicated or as intimidating as you might think. Here are some basic steps to prepare you for purchasing your first home.

1. Have a timeframe (1-year, 3-years, 5-years or whatever fits your goals) that indicates when you'd like to purchase a home
2. Set a goal and SAVE, SAVE, SAVE - determine an amount of money you want to save by the end of your timeframe and keep your eyes on the prize; keep in mind you'll need money for a down payment, closing costs and moving in
3. While saving, work on establishing a good credit score: don't let your checks bounce, pay your bills on time, pay down or pay off your credit cards - get rid of extraneous store cards, keeping only 2-3 major credits cards
4. Keep SAVING!!
5. Prior to looking at homes, meet with a mortgage representative to review your financial status and to determine how much you can feasibly afford
6. Identify homes in a price range that is slightly below the maximum you can afford so that, financially, you can live comfortably with the home you choose to purchase

Some money saving tips to help you along the way:

• Address your Needs, not your Wants
• Take your lunch to work instead of buying lunch; also eat out less for dinner
• Share a ride to work or events, or walk whenever possible
• Recycle and reuse materials
• Turn off lights and appliances when not using them; use flourescent bulbs
• Adjust your thermostat to 72-75 degrees in the summer and 70 in the winter
• Go to a matinee movie instead of a late night show
• Purchase clothes that have gone on sale by at least 30%, and only buy what you need

There are so many other money saving methods you can use. I can't take credit for coming up with all of these tips, but they are common sense; we just need to be reminded of them every so often, especially when there's a big goal at stake like purchasing a first home.

Lastly, identify a real estate agent who will do their best to meet your needs. Good luck and enjoy the benefits of owning your home!