4 Steps to Buying a Home in 2012

Posted on February 2, 2012 by Jesse

The market is still hot and you’ll want to take advantage of low mortgage rates and the flurry of available properties currently in the market. The following are steps you should be taking now in order to make purchasing a home possible this year.

1. Fix Any Credit Problems

The most common reason home-transactions fail are credit problems. Take a close look at your credit report and fix any errors or issues, as soon as possible.

2. Study Time!

Do some research, online and offline, into the following:

Agents – Most people start with asking friends and family for any referrals of Realtors they have worked with. This is a good start, but follow up with an online search to see what kind of reviews and activity they have online. A strong online presence will say a lot about how they conduct their business and how active they are in the market and current trends. When you’ve narrowed it down to a couple, give them a call and set up a meeting to get a personal impression for yourself.

Areas – Things that may decide which area you choose to move to include tax rates, school districts, neighbourhood character and of course prices. If you are in touch with an agent, ask them to brief you on various market dynamics. They will have a deeper knowledge of which areas tend to sell faster and at what prices.

3. Save Even MORE

Although you may feel that you’ve worked hard to save enough cash to fund your down payment and closing costs, studies show that after periods of saving, people often relax and fall into the fun spending stage of buying a new home too soon. It’s easy to notice furniture and other items you’ll want to purchase for your new home.

Even if you come across a gorgeous table or that amazing deal, it’s very often that while you are out looking at properties and putting in offers, the time will come when you will wish you had more cash saved. Whether it’s the extra cash you’ll need to beat out another offer, or a renovation the home you purchase might need. You never know what you’ll need that extra cash for. But trust me, you want to know that you do have it, more than that couch when the time comes.

4. Purge

Now is the perfect time to clean up and de-clutter all of those belongings which are no longer that precious to you. Whether you sell or donate, you can use the proceeds to add to your cash collection or keep your donation receipts for your next years taxes.

If you can start here and focus now,  your house hunt after this should be a breeze!