President's Column: Tips on Preparing to Buy a Home

Lori Elswick, 2010 President, Lorain County Association of REALTORS®

Lori Elswick 2010 LoCAR President

The present market in Lorain County has many opportunities for first time homebuyers. Here are some helpful tips to prepare you for your venture into homeownership.

Contact a REALTOR®. Find an experienced Lorain County REALTOR® who can help guide you through the process. A complete list of Lorain County REALTORS® is available at www.MyNewCommunity.net. Speak with a few REALTORS® before making your selection.

Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. Copies of your credit report is available free of charge from the major credit rating companies. A credit report provides a history of your credit, bad debts, and any late payments.

Get pre-approved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements. Buyers who get pre-approved for a mortgage before beginning their home search may have more negotiating power. Sellers may be more apt to your offer knowing you can afford to buy and they don’t have to wait for your loan to be approved.

Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you. Many lenders have mortgage loan calculators on their websites.

Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

Research other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

Develop your home wish list and prioritize the features on your list. This step is important and can save you time when searching the internet or touring home with your REALTOR®. You can also search the internet by your criteria at www.realtor.com which is a website sponsored by the National Association of REALTORS®.

Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety. You can find out the information on Lorain County communities and schools by going to www.MyNewCommunity.net.

Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries. The Lorain County Association of REALTORS® is one of more than 1,400 local boards and associations of REALTORS® nationwide that comprise the National Association of REALTORS®.

The Lorain County Association of REALTORS® offers a website that provides a complete listing of REALTOR® real estate brokerages in Lorain County, contact information for REALTOR® members, and industry associates. If you are a first time homebuyer or a repeat buyer consider www.MyNewCommunity.net or www.LoCAR.org as a good source for Lorain County REALTOR® information.

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. Not all real estate sales agents are REALTORS®. All REALTORS® are members of NAR along with their State and Local Associations.