Thursday, January 17, 2008

Bill Evans

If 2008 is the year for you to buy a new home, read on because this column will help you prepare.

As I’ve said in previous weeks, we are in a buyers’ market and will continue to be through 2008. Throughout this year, buyers will find more deals and may be able to purchase a home that was out of their budget at one point in time.

The start of the new year is when people think about what they want to improve in their life or change, and if you are thinking about buying a home there are definitely things to think about now.

With the mortgage industry still in a bit of a slump, it’s important that you make sure your credit and finances are in order. Work to pay off those credit card debts, because having a high amount of debt may lower the amount of mortgage a lender may be willing to give you. Make sure you know your credit score. It’s the law that the main credit reporting bureaus provide you with a free copy of your credit report once a year, so make sure you obtain that, read it and understand it.

Another thing you must understand before starting to search is how much you can afford to spend on a home. There are different ways to figure that out. You can ask a lender who can pre-approve you or you can go online. Every major mortgage lender has a Web site that can help you out.

If you work with a lender, he or she will look at your income, debt, assets and liabilities and come up with a dollar amount of what you can afford to spend.

After you know and understand what you can afford, it will save you time and stress in the long run because you won’t be looking at homes that aren’t in your price range.

When you decide you are in the market, it’s time to choose a Realtor. A good Realtor will help you avoid common pitfalls, make wise home-investment decisions and bring order to the entire home-buying process.

When looking for a Realtor, search for someone who has easy-to-use tools that will make the process easy and fun for you. Having your own page on a Web site devoted just to you and your search — one that lists property photos, open houses and offers easy communication with your Realtor — will make this important process more enjoyable.

So, now that you know what you can afford and you’ve chosen a Realtor, start looking. Remember that a house is more than just a roof over your head. It’s a home, and with a home comes a neighborhood. It’s important that you take a look around the neighborhood and make sure that it is a fit for you and your family.

If you have made the decision that this is the year to buy a new home, always remember that all real estate is local. So when reading reports about the 2008 real estate market, remember that what is reported nationally may not be accurate for your hometown.

Like I’ve stated in previous articles, the Columbus market is in a much better position than the national market.