There are many places you can begin.  The internet, newspaper, and real estate guides are all good starting points in order to see what is available. 

You will now want to put time and effort into finding a real estate agent to assist you in the home buying process.  Ask your friends and family whom they might recommend.  Check out the internet to see if there are testimonials for any of the real estate agencies in your area. You should ‘shop around’ for a REALTOR®, just as you will be ‘shopping around’ for a home!

You want an agent who is available, knowledgeable, and ready to serve you.  You will be spending a lot of time with your real estate agent, and so it is worth your effort to find one who you really relate well with and whom you feel will serve you best.

Here are some great beginning questions:

1.  
   1. What homes in this area do you have available for under $100,000 (put in your specific range here)?
   2. How does your agency work with potential buyers?
   3. Can you give me names and numbers of buyers who recommend you?
   4. What makes your agency different from any other?  What sets you apart from other agents?
   5. Are you a member of the state and national REALTOR Association?

Take notes during the calls.  Consider the responses, and how you felt about them.  If no agent was available, how long did you have to wait for a call to be returned?  Did the agent ask you if you were working with a lending institution to pre-qualify for a loan?  Was the agent easily able to give you names of buyers that would recommend her/him?  You will want to allow some time to review your notes and process your reaction to each call.  It is important that you find an agent with whom you ‘connect’ and trust to work hard for you. 

Author: Barb Smed, Broker – Northeast Iowa Realty – Waukon and Lansing, Iowa.  Email: barb@neiarealty.com

In everyone’s life, there are many minor decisions. These decisions usually require less thought and consideration than the major decisions. A common example is ‘Where will I go on vacation?’

Let’s consider this minor decision. Before going on vacation, you do some planning. You pick a destination, search out lodging options, research activities, and figure out how you are going to get there – and how you are going to pay for it.

If a minor decision is given this much attention, shouldn’t a major decision be given even more?

The home buying process is exactly that, it is a ‘process’. Time and effort spent methodically going through the steps will pay off in the end. The first step is working with a lending institution to figure out how much you can afford to spend on a home. This does not have to be complicated. . The lender will have a full list of the information you should gather, such as tax returns for the previous two years, documentation of wages and other income, such as child support or alimony; and a list of regular monthly, quarterly or annual payments. Your credit report will be pulled and the lender can discuss with you how high your score is and exactly what that means. Closely review the information to make sure it is accurate.

What if your credit score is too low to qualify for a home loan? As disappointing as this might be, it actually puts you in position to realistically look at your financial condition. Your lender should be able to give you ideas on how to improve your score. This may take some time. For instance, if you have a history of late credit card payments, you will need to consistently make all your payments on time. You can improve your credit score, over time, if you follow the process of paying your bills when they are due.

Work with your lender until you are ‘Pre-Approved’! Now you start the process of looking for a home! Your lender will give you a preliminary loan amount, start looking at homes in that range. It is time to give serious consideration to what type of home you want and to start exploring the housing options in your area.
Written by Barb Smed, Broker/Owner
Northeast Iowa Realty
17 Allamakee Street
Waukon, IA 52172
Licensed to sell real estate in Iowa
www.neiarealty.com

Buying a home is one of the most exciting events in your life. If you are currently renting and thinking about buying your first home make sure you are ready before making a commitment. Here are some important things to consider:

• Have you saved enough money to support a down payment? It is critical that you consider the down payment in addition to your other debts. To determine how much you can afford, you first need to know your monthly income. You also need to calculate your monthly expenses, include all debts such as credit cards, car loans etc. There is a simple worksheet available in most real estate offices.

• What will the estimated monthly payment be for your home? Be sure you figure a realistic total that includes principal and interest. It should also include taxes and insurance. In some purchases it will also include association fees. It is always better to estimate on the high side.

• Look at all of the additional costs of home ownership. Be realistic about the cost of heating, cooling and other utilities for your home. Budget in the estimated cost of home repairs and maintenance, this is especially important if you are buying an older home.

• Be confident that you can afford the monthly payments. Have a financial plan and a budget for your household. Consider all long-term debts like car loans or credit card payments. Do you have enough budgeted if your interest rate increases in the future? Keeping your payments affordable is the best way to avoid foreclosure or financial problems.

If after reading the above information you have determined that buying a house is right for you CONGRATULATIONS! Let’s start shopping for your new home today.