• Set a monthly budget and decide exactly how much you can spend on your mortgage. Dedicate yourself not to go over that number even if you find the home of your dreams.
• Contact a lender and get pre-approved. Make sure your lender is aware of your monthly budget and ask for monthly payment estimates that include principal, interest, tax and insurance.
• Think carefully about where you want to live. In addition to things like proximity to work, schools, shopping, friends and family, you will also want to evaluate the neighborhood's growth potential. For most people a home is not simply a place to live, but it is also an investment. If you're planning to one day move to a bigger home you'll need to take into consideration the resale value a few years down the road.
• Make a list of things you absolutely have to have-like three bedrooms and two bathrooms, and another list of things you'd like to have but can live without, like alarm system, automatic sprinklers, etc..
• When you're shopping, collect flyers for each property and make notes. If you look at a lot of houses it will be difficult to remember one from the other.
• It's okay to start with a wide search of maybe three or four cities or areas but once you've seen what's available you should start to narrow your search as much as possible.
• Listen carefully to the advice of your Buyer's Agent. Agents have a special understanding of the real estate market that can only be gained through daily involvement in the buying and selling process.
• Never make an offer on a property without first checking the recent comparable sales. As a result of their constant market involvement, your Buyer's Agent will be the best person to evaluate this information.
• Never try to negotiate directly with a seller. Always let your agent present your offer and any counter-offers through written contracts.
• Keep records and copies of all papers and contracts throughout the transaction.