Here are some tips to make your home-buying experience positive and
less stressful.

Preparing to Move

Organize

Be prepared by becoming knowledgeable. Educate yourself on each step of
the process so you know what to expect. Get organized ahead of time.
Keep a notebook and calendar dedicated exclusively to the home-buying
process. An Excel spreadsheet is a great way to organize and compare
all the information you gather, such as the homes you are interested
in, potential lenders, and different mortgage rates.

Finances

Assess your financial situation before you begin looking for a home.
Come up with a solid number for the maximum amount you can afford, as
well as a target amount you would like to spend, ahead of time.
Overestimate the closing costs (interest rates can change). This is
also a good time to begin gathering the financial documents that you’ll
need when applying for a loan.

Keep your finances in order until you close on your new home, which
could be as long as six months away. Do whatever you can to help
improve your credit score; don’t acquire new debt (no major purchases,
new loans or new credit cards), reduce or eliminate any current debt,
and pay your bills on time. It is never too early to begin improving
your credit and is best started as early as two years prior to
purchasing a home.

Find an Agent

Find a real estate agent who you trust and connect with on a personal
level. Communication in this relationship is fundamental. Some
questions to ask yourself: Are they good at translating industry jargon
into terms you can easily understand? Do they communicate well using
media that works for you, such as email, cell phone, or video
conferencing? Credentials are a big factor too. Choose an agent with
proven expertise in both the type of property and property location
that interests you.

Finding a Home

“Think from the end,” is a common phrase heard in human potential
circles. See yourself in your new home. How does it make you feel? What
does it look like? Keep a journal to record these thoughts. Be as
descriptive as possible. This can help to not only narrow down
precisely what you are looking for in a home, but it can also help
anchor you emotionally during a potentially unstable time by keeping
the big picture in mind.

While dreaming of your new home is an important first step, keeping
your expectations in check is equally important. Keep in mind that the
criteria of what you are looking for in a home will change along the
way. No house is perfect. Be willing to compromise on some of your
requirements. Make a list of your top priorities (must-have’s) and
lower priorities (nice-to-have’s). This will help identify areas where
you can be more flexible.

Once you’ve found a home you like and know what you can work with
financially, don’t let the latest market news influence your decision
to move forward. If you start second-guessing the housing market or
interest rates, you risk losing the home to another buyer. Choose a
home because you love it. Listen to your heart.

Waiting for Acceptance

Once you’ve made an offer on a new home, try to relax and engage in
your routine activities while you wait to hear whether the seller
accepts your offer. During this waiting period, there are many
potential stressors that could send your mind reeling. What if the
seller rejects your offer, or comes back with an unreasonable
counter-offer? Was your offer too little, or too much? Be prepared to
make many offers before one is accepted. Keep in mind, even if your
offer is accepted, there’s no guarantee it will close. Try to remain
detached from the outcome until after the property has been inspected
and you’ve been approved for a mortgage.

Inspection Period

Hire experienced and certified inspectors to conduct a thorough
inspection of the property including possible insect damage. Be present
during inspection, so you can ask questions regarding the home and
become knowledgeable about any issues that are discovered.

Getting approved for a Loan

Taking out a loan can be the most stressful part of the home-buying
process. Transactions typically take at least a month to complete.
Having your financial situation scrutinized can be an uncomfortable
process. Worrying about whether you will be approved is an added
stressor. It helps to gather your financial records (credit card
balances/statements, bank statements, investment statements) prior to
meeting with a loan officer. Obtain a copy of your credit report; you’re
entitled by law to one free credit report per year. A copy of your 4506
T form (IRS Tax Return Transcript), which includes a summary of your
tax information, is also available online for download.

Don’t lose sight of the fact that you have options when choosing a
lender and a mortgage. This can help restore a sense of control when so
much of the home-buying process is out of your hands. Talk to several
lenders; don’t just go for the first lender you talk to. Consult with
your Real Estate agent to help you through the process of securing a
mortgage. Don’t hesitate to ask questions until you understand the
answer.

After Close, Moving In

Congratulations! You’ve successfully negotiated yourself through the
complex maze that is home-buying and now find yourself at last kicking
back on your couch with your favorite drink in the home of your dreams.

Courtesy of Rebekah Trevino