7 Steps for Success When Buying a Home (Step 1 & 2)

Buying a home can seem like a frightening prospect. Whether it's your first home or your fifth, so much is at stake: your savings, your credit rating, and your financial freedom. It is difficult to find the courage to sign on the dotted line even if you want that home very, very badly.

How do you determine whether the purchase of a home makes sense?

What is the easiest way to examine the whole picture, from emotions to economics?

I want to share with you my "7 Steps for Success When Buying a Home" plan. If you read this plan, you will learn how to separate whims from true needs. You will discover how to prepare a game plan for your real estate venture, how to research effectively, choose wisely, finance appropriately, and survive the whole procedure with your smile in place.

To avoid overwhelming you in a single blog post, I am including just Steps 1 and 2. Watch for the rest of the steps to be explained in the coming days.

Here is the entire summary of the process to start...

7 STEPS FOR SUCCESS WHEN BUYING A HOME:

1. Establish your needs and wants. 
2. Determine how much you can afford. 
3. Get pre-qualified or pre-approved by a lender. 
4. Find a good real estate agent to help you. 
5. Find a home that meets your needs. 
6. Make an offer to buy a home. 
7. Save as much as you can on your initial investment.

STEP 1: ESTABLISH YOUR NEEDS AND WANTS

Begin your search for a perfect home by making a careful assessment of the kind of home you need and want. We recommend that you write it down. Take time, right now, to be as specific as you can about your particular requirements. First, make a list of “necessities” in your home. Next, list the features that you “desire.”

STEP 2: DETERMINE HOW MUCH YOU CAN AFFORD

Set up a budget for yourself. Decide how much you can really afford to invest and be comfortable with, for your monthly house payment. Be realistic. Most lenders suggest that your payments be no more than 28 percent of your total monthly income. Don’t forget to include taxes and insurance if you plan to escrow.

Even though Steps 1 and 2 are fairly short, they are very important to the overall "7 Steps for Success When Buying a Home" plan.  Very soon I will blog about Step 3.

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