Have Your Credit Pre-Approved

Getting a credit pre-approval means you receive a loan qualification from your mortgage company before you have found a home, based on a review of your credit and finances. A credit pre-approval shows sellers that you're a qualified buyer and helps you establish a clear price range.

There are many good reasons for getting a credit pre-approval before you buy a home:

• It makes your home search more efficient by allowing you to focus only on homes you know you can afford.
• It lets sellers know that you can back up your offer, so they don't have to worry about whether you can get a loan.
• It lets you know early in the process if you will have difficulty getting pre-approved, so you have a chance to address problems before finding a home.
• It gets much of the mortgage process out of the way up front, so you can complete your transaction quickly after you find a home.

Go House Hunting

Now that you've had your credit pre-approved and know how much you can afford, it's time to go house-hunting. You may look at one house or two dozen before you find the one that's right for you. Just keep an open mind, and focus on the things that are really important to you, and you're sure to find a place where you'll feel at home.

Choosing a neighborhood

Many times finding the right home for you and your family has as much to do with the neighborhood as with the home itself. Beyond price, what you look for in a neighborhood probably has a lot to do with your personal situation. How far are you willing to commute to work? How close to you want to be to family and friends. Do you have young children who would enjoy a nearby playground? Picturing your day-to-day life in a certain neighborhood is a good way to predict whether you will feel comfortable there.

Considering different house styles

Some people may want to look beyond the traditional detached single-family home. Condominiums, town houses, and duplexes can be more affordable options, especially if you're looking in a densely populated area. These types of housing may not offer as much yard space or privacy as single-family homes, but those may not be as important to you as the chance to own a home in the neighborhood of your choice.

Building a new home

If you've looked and looked for your dream home without success, or if you want to be the very first owner of a brand new home, consider building. You'll have more opportunity to customize the home's features and design, more up-to-date appliances and building materials, and usually a builder's warranty to cover problems that come up in the first year.