Buying a home is one of the biggest decisions – both financially and emotionally – you will make in your lifetime. If you’re a first-time buyer, you’re probably thrilled about making the jump from apartment renting to owning your own house. While you’re excited, however, you also may be a bit overwhelmed by the procedures involved. Relocating or move-up buyers have the advantage of past experience, but still might need a refresher course on the intricacies of the process.

The buying process involves several steps, from finding a REALTOR® to making an offer to closing the deal. Whether you’re a first-time or experienced buyer, you’ll find an array of information in this section that will assist you on your way to realizing your goal of homeownership.

Are You Ready to Buy?

As with any major purchase, it pays to be informed prior to making any decisions. As experienced buyers already know, buying a home is a complicated process, so it’s important to start at the beginning and thoroughly understand each step. Whether you’re buying your first home or your third, make sure you have the necessary financial resources and have explored all your options before you purchase a new home.

If you’re a first-time buyer, you should weigh the pros and cons of homeownership versus renting. There are many advantages and disadvantages to consider. For example, renters have the freedom of mobility if they choose to move, but their monthly rent checks do not establish long-term equity or produce any other benefits. And while homeowners’ mortgage payments accumulate equity, these payments are generally higher than rent payments and come with the responsibility to manage the care and upkeep of the property.

Both new and experienced buyers have their own sets of financial considerations when it comes to buying a home. Move-up buyers should evaluate their financial situation to ensure they’re prepared to meet the higher mortgage payments involved with relocating. Likewise, first-time buyers should determine if monthly mortgage payments fit in their budgets. In addition, you’ll need to be prepared to cover the downpayment and closing costs. And, you should consider whether you meet the basic criteria to qualify for a mortgage; lenders prefer that applicants offer a stable job history and a good credit record.

Using A REALTOR® When Buying A Home

For most of us, a home is the single biggest purchase in our lives. The enormity of the financial transaction aside, finding the right home to fit our particular needs and wants is no easy undertaking. Just as you wouldn’t buy a car, computer or camcorder without doing some research into various models and prices, you shouldn’t consider purchasing a home without some expert advice and guidance. Though some people may think of using the services of a REALTOR® only when selling their homes, a REALTOR® can be invaluable when buying one as well.

For instance, a REALTOR® can help you determine how much home you can afford based on your financial situation, help you get prequalified for a loan, and even inform you about available financing options. A REALTOR® also is an expert on the neighborhood, and can provide detailed information about schools, transportation, local taxes and community characteristics. Using a REALTOR® is also one way of gaining access to homes listed on the Multiple Listing Service (MLS), an important marketing tool used by REALTORS® to inform other REALTORS® about available properties. That means a REALTOR® can give you information about a wide range of available homes from which to choose. When it comes to finding out ifyou’re paying too much, a REALTOR® can provide you with market analyses comparing asking and selling prices of homes in the neighborhood. Finally, a REALTOR® can serve as the liaison between you and the seller, bringing to the table negotiating expertise and knowledge about required disclosures and the housing market.

So, where do you find a REALTOR®?

Like finding any good professional, the best way to find a REALTOR® is through recommendation from friends or those who have bought or sold homes recently. Ask for references and check each thoroughly. Also, interview several REALTORS® before you decide on one.

It’s important to find a professional who is a REALTOR®. Why? A REALTOR® is someone who, as a member of the local, state and national trade associations, adheres to a strict code of ethics. Recently, the NATIONAL ASSOCIATION OF REALTORS® commissioned a nationwide survey to determine whether REALTORS® were doing their job professionally. The results were impressive: 97 percent of respondents indicated they received “excellent” or “very good” service from their REALTOR®.