Buying a home? Here are some tips to help you prepare

It helps to plan ahead when you buy a home

The purchasing of a home is the most expensive thing that most of us will ever do. With the average price of an American house now in the range of $225,000, it is likely that the amount spent will be three quarters of a million dollars by the time it is paid. Given the sums that we spend on our houses these days, it only makes sense to plan those purchases carefully.

The last thing you want to do when you buy a house is rush out and buy. The same can be said when you take out a loan. As with a house, you don’t want to select the first thing you come across. You want to take your time to make sure that the loan suits your needs as well as the home that you hope to purchase does. Taking a bit of time to shop for both the house and the loan that funds it is the key to making sure that your purchase serves you well.

here are some tips that will help you plan the home and loan shopping process:

• Check your credit - You can assume, if you like, that your credit is just fine if you have no delinquencies or late payments. On the other hand, studies show that one out of every four credit reports has an error on it, and an error could cost you money in the form of a higher interest rate on a loan. You might also discover that someone has stolen your identity and taken out credit in your name. The best thing to do is check your credit report, fix any errors, and pay any past due bills. This will allow you to obtain the best rates on a home loan.
• Find a lender and a real estate agent - Take your time; these people need to help you, so find someone who has your best interests at heart. Most real estate agents work for sellers; you want to try to find someone who will help you find what you need. With lenders, you need to shop around, find someone who can offer you good terms and with whom you feel comfortable.
• Get preapproved for a loan - That’s preapproved, not pre-qualified. Pre-qualified means that the lender thinks that you can probably qualify for a loan, based on a casual glance at your finances. Preapproved means that you have actually filled out the paperwork, undergone the credit check, and you are cleared to obtain the loan just as soon as you need it. Being preapproved will speed up the closing process.
• Find an attorney - While it isn’t necessary, the few hundred dollars spent on an attorney may pay off if he or she discovers problems with liens, titles or easement issues. It is far better to be safe than sorry.
• Find an appraiser - Sure, you can just accept whomever the lender suggests, but you should be aware that appraisal fraud is a big problem these days, and you want to make sure that the appraisal that you obtain is accurate. Check around and get references.

Taking the time to plan ahead will pay off in the long run. The time spent planning and hiring the right people will pay off later when you find that you don’t have the sorts of closing problems that plague other people who buy houses.