When looking at buying, there are a few things that should be considered or put into motion before going down that path. First of all, consider your current living situation. If you buy a home, are you going to be staying there for at least a couple of years? If your answer is no, then buying may not be right for you. A lot of money goes into buying and then of course letting selling a property, if you walk away too quick after buying you may lose more then what you put in. This factor is even more important today, as home values are steadily falling.

If buying still seems right to you, then it is smart to have a competent professional by your side. Look at your local Realtors and find out who seems the most savvy. They can help you with all the steps to come. Having someone to guide you ups your chance of buying success. Realtors know exactly what lenders today require. In today`s market lenders are even more strict and want spotless credit. Make sure there are no spots to be had on your history. Pull your credit report, and if need be, start immediately on repairing your credit. Then you are on the road to getting prepapproved, which gives you an exact idea of what kind of home you can afford. Then you should start looking at downpayments. Most lenders like 20%, however there are those who will go lower. Based on the homes you can afford, what kind of downpayment would you be expected to make. Once that is done, check out your options as far as lenders and try to get a jump start on what kind of money they will expect from you.

Once you have a Realtor and are prepapproved, and you have found a home you like, its time to put in a bid. This is when your Realtor will analyze the asking price and the subsequent closing price of similar homes in your area, that have sold in the past couple of months. Based on that number, and how home values are going with the market, your Realtor will come up with your bid: a number aimed at getting you the home, but with the least amount of damage to your wallet. Your Realtor can also make sure that a home inspection is done before hand, lets make sure nothing scary is hiding in the closet...leaky pipes...infestation... you don`t what to have a lot of hidden costs once the contract has already been signed and money exchanged.