First-Time Home Buyer? 5 Tips To Buy Quickly But Wisely

Buying your first home during a tight market can be a confusing, disheartening experience. In a market where homes are selling fast and high, you don't have the luxury of playing catch up. You must be ready to go and able to pounce on the right house. If you're in this position, here are 5 tips to help any first-time buyer get their dream home.

Know Your Credit. Start your home search by making sure your credit is up to the task. Review your report using a free site like www.annualcreditreport.com. Scour the reports to ensure that nothing is incorrect or outdated, and get anything corrected that needs to be. This may take time -- and even a little extra if your credit isn't as good as you want it to be -- so start 6 months to a year before going home shopping. 

Understand your Cash Flow. Assessing your income and outgo on a monthly basis is a key to knowing how much home you can really afford to buy. Try tracking your expenses and budget for at least 6 months before talking with a banker -- ensuring that you truly understand what you want to spend on a home. In addition, add a cushion in your budget for miscellaneous home expenses like taxes, insurance, HOA expenses, home repairs, and maintenance costs. With these numbers in mind, decide on a realistic house-buying budget.

Think Long Term. While you may be looking at a "starter" home as a first-time buyer, there are solid financial reasons to look beyond that. When you plan to resell the home, you will want it to appeal to new buyers. So, think about what your pool of potential buyers will want. If it's a family home, for example, research the schools in the area and try to buy a home with sufficient bathrooms and a good backyard for kids. Think about your own future needs, too, just in case you end up in this home for longer than planned.

Make a List. Looking at homes is a daunting process, so give yourself the benefit of forethought. Make a written list of your (and your partner's) priorities, items that need to be investigated, and things to avoid, then carry that checklist with you when touring homes. Having your needs and wants written down can help you objectively evaluate homes. 

Look Beyond the Visuals. Homes for sale are usually either carefully staged or left as the homeowner is living in them. Either way, you should train yourself to look beyond the way things are placed in the home. This may mean seeing the home's potential past clutter or poor furniture arrangement. Or, it may mean checking things out behind well-staged layouts (like ensuring functional outlets or space for more normally-sized furnishings). 

By following these few basic guidelines, you can help make sure that you find the right house for you or your young family. And the end result will be a house that you can really call home.