Buyers Tips

Get prequalified for a mortgage with a well recognized lender. You'll be able to make a firm commitment to buy and make your offer more desirable to the seller.
Stay in close touch with your Realtor to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.
Scout out new listings yourself and contact us when you find a home of interest.
Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won't be unsure when you have the chance to make an offer.
Bid competitively. You may not want to start out offering the absolutely highest price you can afford, but don't try to go to low and get a deal. In a tight market, you'll lose out.
Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing.
In a tight market, you'll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.

Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
Develop a wish list of what you'd like your home to have. Then prioritize.
Select two or three neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.
Get your credit in order. Obtain a copy of your credit report.
Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.
Organize all the documentation a lender will need to preapprove you for a loan.
Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

W-2 forms or business tax return forms if you're self-employed for the last two or three years for every person signing the loan.
Copies of at least one pay stub for every person signing the loan.
Copies of two to four months of bank or credit union statements for both checking and savings accounts.
Copies of personal tax forms for the last two to three years.
Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value.
Copies of your most recent 401(k) or other retirement account statement.
Documentation to verify additional income, such as child support or a pension.
Account numbers of all your credit cards and any outstanding balances.
Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
Addresses where you have lived for the last five to seven years, with names of landlords if appropriate.

Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.
Gains. Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there's no guarantee of appreciation, a 2001 study by the National Association of REALTORS found that the typical homeowner has approximately $50,000 of unrealized gain in a home.
Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.