Preparing to Buy a Home

1. Plan to Buy in an Area You Intend to Stay.

Make sure you can commit to remaining in one place for at least a few years. Frequent buying and selling can be risky and will always involve related fees that substantially affect your profitability.  There are Federal, State and local tax implications to frequent buying and selling as well.

When looking at areas of interest take into consideration your job and commute time, school district, distance from loved ones and any other factors that are important to you.

2. Check Your Credit.

Since you are likely to need a mortgage to buy a house, ranch or other real estate, make sure your credit history is as clean as possible.  The three major credit reporting agencies are required to provide you one free credit report every 12 months upon your request.  The most reliable way to access these reports is through the Federal Trade Commission.                                      

3. Calculate your Finances.

Aim for a house you can afford. One rule of thumb is that you can pay for a house that is two-and-one-half times your annual salary. Another rule of thumb is that you should spend no more than 30% of your take-home pay on a mortgage payment.

Getting pre-approved by a lender will ensure that you are looking at houses in the right price range.

4. Hire a Professional.

You've used the internet to find me so investigate this site and compare my dedication, qualifications and experience to others in the market.  When you're through monkeying around, give me a call!

Also, it is best to ask for recommendations from people who have used agents when buying their home. Ask them what their experience was like and if they would use the same agent again. Interview several agents before determining the one you want to work with.

5. Do your Homework.

When making an offer on a property, your opening bid should be based on the sales trend of other properties in the Fredericksburg, TX market. Ask for a Comparable Market Analysis of property sold in the last three months. If properties are selling five percent below the asking price, then make your offer five to ten percent below the listing price.

6. Hire an Inspector.

Even though your lender will require a home appraisal in order to determine the worth of the property, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. The resulting Property Inspection Report will establish if there are any problems that would require costly repairs.

7.  Check the "CLUE" Report on the home you select.

C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. The report contains consumer claim information provided by insurance companies. It includes policy information such as name, date of birth, and policy number, claim information such as date of loss, type of loss and amounts paid, and a description of the property covered.  So if you are curious about or concerned with a property's insurance history, request that the seller provide you a copy of this valuable (but inexpensive) report.