Are You Trying To Decide If You Should Buy A Home?

We buy things everyday. The majority of our purchases are small and frequent enough and so familiar to us that little additional knowledge is necessary to make a sound purchase decision. But, then there are those larger purchases – like your next home that requires some additional attention to details and specific knowledge to insure you make a wise decision. In other words, buying a home should not be just another “buy decision”. This type of purchase should be made after taking several steps as well as gaining more technical knowledge about the home buying process.

Most people think they need to take time to research to know they did not over pay for the home. But, many people don’t even consider how to find the best neighborhood for their money.

Just this week I am assisting a first time home buyer (who is smart enough to take advantage of the $8,000 government 1st time home buyer tax credit that expires 12/31/09) find a home. Interestingly, he has selected one home that is in a “short sale” and appears to be well under priced compared to other homes we have seen. But, after reviewing recent comparables within that specific neighborhood, it actually appears that the home is over priced. It is especially interesting that the home also has five offers on it that the two previous lenders have not gotten around to accepting. But, that is another story for another blog.

Here are some pointers and things you should think about when you decide to purchase a home. Remember, what you do not know, can easily get you into trouble.
* Shop around for mortgages and even a knowledgeable and very experienced Realtor to start your process.

* Next on my list would be to have your real estate broker determine what neighborhoods are currently holding their own or are now showing signs of appreciation. Needless to say, it would not be a good idea to buy a home in an area that was still showing signs of downward price movement.

* Once you have shopped for the best mortgage that fits your current financial abilities and the lender’s underwriting needs the best, determine which lender has the most competitive rates for that loan program. - Remember, you can bargain with your mortgage broker as well as the seller of the home.

* Don’t save money by skipping on the home inspection before buying – even if it is a new home. This mistake can cost you thousands of dollars in the future. (I drive this point home to my clients by suggesting that they probably already have enough problems in their lives without going out and buying the undisclosed problems of some seller.)

* Know what type of house you are looking for, what type of neighborhood, and how much you are willing to spend before you start looking. This one step can save you days of time and tons of frustration. Some of my buyer pay more attention to this detail than others. What level of frustration are you willing to pass on?

* The more knowledgeable you are about the home buying process the smoother your purchase will likely proceed.

The decision to buy a home is a big one! It is important to research and familiarize yourself with the aspects of buying a home. I have 31 years of real estate experience within the metro Denver real estate market. Perhaps I can at least visit with you to discuss your specific questions and to perhaps suggest a few additional points you might want to consider to help you decide if now is the right time for you to be buying a home. As always, there are absolutely no obligations on your part.

Here are a couple helpful links to get you started:

- Buying A Home

- 5 Things To Know Before You Buy a Home