Purchasing Your New Home: A Step By Step Guide

WINTER PARK, Fla., - Whether it is your first time or your fifth, every purchase is different, the circumstances are never the same, and each seller is always different as well. If you are looking at buying your first home, you might want to put pen to paper and save this, as a sort of check list to guide you into a smoother purchase.

1) Getting Started

The first step getting your finances in order. Thanks to the Fair Credit Reporting Act, you have the right to obtain a free credit report once a year or within 90 days of being denied employment or a line of credit, based on your report. There are many companies advertising free credit reports, however, I advise getting it straight from the source, as often times those companies require a credit card that gets charged after 30 days.

2) Finding a Lender

Once you have an idea of what your score is and what your history looks like, you're going to want to look for a lender to help you secure a loan. Mortgage brokers are usually the most flexible, they often have a wide range of programs to choose from, from various sources. Banks and credit unions on the other hand, will only have the programs offered through them.

You should consider getting prequalified before you start looking for your dream home. You might fall in love with a house that you won't be qualified for, and after that no other home will compare. Prequalifying for a loan can often tell you many things, for instance, if you should wait a little longer, if there are things on your credit history you should rectify before continuing, and how much of a down payment you will need.

3) The fun part

Now, the fun part, house hunting. Once you know what your price range is, try to hone in on a certain area. To make things easier you can use a realtor, but you can also do this on your own. The benefits to a realtor are obvious, experience. A Realtor will be able to send your properties to choose from, instead of you having to drive around or look online. They will also be able to negotiate pricing and give you experienced recommendations. The down side, they don't work for free. Once you choose the home of your dreams, you can notify your chosen lender to draw up contracts and handle the rest.