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Step 1
Research the market. Before you rush in and write an offer for the first house you see, do your homework and look at the other homes for sale in the area. Check to see if the house you're interested in is comparable in size, property and, ultimately, price.
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Step 2
Visit a reputable mortgage broker and get pre-approved. Most sellers won't even entertain an offer from a buyer who hasn't been pre-approved for the amount he needs to buy his house. It's heartbreaking to find your dream home only to have it out of reach because you haven't taken this important step.
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Step 3
Check out the local school system. If you have children, this is essential. There's no point in buying a new home and moving the family if you don't first make sure that the schools are decent. If you make the mistke of skipping this step, you'll probably be putting this same house on the market in the not-too-distant future.
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Step 4
Ask your realtor to find out the crime rate. She should know this information already, being an expert in homes in the area. If you're moving to a new town or state, you need to know this information not only for your own safety, but for resale as well.
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Step 5
Consider your home a major financial investment. All too often, home buyers think that they'll only be in the house for a predetermined amount of time. This is especially true of first-time home buyers who are looking to buy their "starter home." Avoid this buying strategy because you may find out that after you and your family get settled and put down roots, you're there for 20 years.
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Step 6
Reach for the upper end of your budget. Since you might be in this house for a while, don't be afraid to buy the house that's at the top of your budget range. Incomes tend to rise as years go by, and what seems like a stretch today won't be such a hardship 5 years from now. Buy the best quality home in the best neighborhood you can possibly afford.
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Step 7
Keep a poker face. Never walk into a house and yell, "I love it!" or ask, "Where do I sign?" If you put all your cards out on the table right away by letting the seller or the seller's agent know just how much you want the house, you leave yourself very little negotiating room down the line.
