Get It Together

What should I know before buying a home?

Here are some tips that could save you a lot of time, money and trouble.

• Plan ahead.
• Establish good credit.
• Save as much as you can for the down payment and closing costs.

Get pre-approved before you start looking . Not only do real estate agents prefer working with pre-qualified buyers; you will have more negotiating power and an edge over home buyers who are not pre-approved.

Set a budget and stick to it . Make sure you feel comfortable with the monthly mortgage payment amount.

Know what you really want in a home. How long will you live there? Is your family growing? What are the schools like? How long is your commute? Consider every angle before diving in.

Make a reasonable offer. To determine a fair value on the home, ask your real estate agent for a comparative market analysis listing all the sales prices of other houses in the neighborhood.

Choose your loan (and your lender) carefully. For some tips, see the question in this section about comparing loans.

Consult with your lender before paying off debts. You may qualify even with your existing debt, especially if it frees up more cash for a down payment.

Keep your day job. If there is a career move in your future, make the move after your loan is approved. Lenders tend to favor a stable employment history.

Do not shift money around. A lender needs to verify all sources of funds. By leaving everything where it is, the process is a lot easier on everyone involved.

Do not add to your debt. If you increase your debt by financing a new car, boat, furniture or other large purchase, it could prevent you from qualifying.

Timing is everything . If you already own a home, you may need to sell your current home to qualify for a new one. If you are renting, simply time the move to the end of the lease.