The top 5 things you must do before buying a home.

So you have made the decision to buy a home. Now what? Where do you start?
There are five things you absolutely must do before you even shop for homes. The home buying process doesn’t have to be a negative experience. There will be a certain amount of stress because it is a large undertaking but it doesn’t have to be a chaotic event if you follow some guidelines.

The first thing you need to do is find out how much home you can afford. Not how much you can get approved for, but how much you can actually afford to live with. This is where most people make a costly mistake. It is easier to find out what your budget can accept without putting you in a bind and set your limit there. What if you over estimate how much you can afford, or if you push it to the very limit of what you can afford you expose your self to risk? What if you lose a source of income or have unexpected expenses. You could risk losing your home. So make out a budget and stick with it.

Next find a good reputable Real Estate Agent. When you are the buyer in the transaction it doesn’t cost you a thing to work with a good agent and it will be the best choice you will make. The Realtor is the one who will make sure that all the legal and contract aspects are correct and will be able to give unbiased advice that will save you money and headaches in the long run.

Once you have a Realtor on your side it is time to know what rights you as a buyer are entitled to. Ask your agent to provide you with this information. In Texas you are required to receive this and other information so it shouldn’t be a problem. Here is a link to HUD http://www.hud.gov/buyers so you can download the information directly. Understanding your rights as a home buyer is very important. Know them and use them to your advantage.

Now you are almost set to start looking for homes. Only two things left to do. Get a 3 bureau credit report. Knowing your credit score isn’t enough. If you actually see the reports you may have things on there that don’t need to be. Having them removed and getting your credit score up will only help you get a better deal on a loan.

And the final step before you go out looking at homes is to shop for a loan. Don’t just talk to one company. You shop for a loan just like you would for any other good or service. You may find that one company may have a little better interest rate. Even a half a point is worth a large sum of money over the life of the loan. Once you have picked a company get a pre approval and start looking for your new home.

There is no disputing that the real estate market in Houston is feeling a bit of a crunch. The numbers are in and there is a marked down turn. The total number of single family homes sold in November 2007 was down 10.2% from the same month a year ago. This is a relatively small decline compared to markets outside of Texas. Other indicators such as Total sales volume also trended downward at 4.7% and total pending sales off 5.7% from November 2006. This might paint a dim picture for some but if you take a look at the big picture it might not be as bad as it originally looked.

With all of these numbers being down the Houston area still saw an increase in the average price of a home up 6.4% and it was the second best November ever for single-family home sales, Highest average single-family sales price for month of November, and the second best year on record.

So for all the negatives there are several good indicators that the Houston real estate market is fairing better than most. There is a lot of inventory on the ground and lots of deals to be had for the savvy investor and people looking to make a good investment on a home.


If you are a first time home buyer and looking into new homes there are great incentives and big discounts out there if you are willing to shop around a little. The key to getting the best deal on your home purchase is to acquire the services of a Realtor. If you are a buyer the cost to you is nothing and their expertise and knowledge of the local market is invaluable to your home search and can save you time and money in the long run.

Source for statistical data
http://www.har.com/mls/dispPressRelease.cfm

August 17, 2007

Good Afternoon fellow bloggers.....If you or anyone else you know needs help with selling or purchasing a home please contact me.