Buying a new home can be an exciting, and sometimes, an overwhelming experience. Without proper preparation, it is easy to let important details slip through the cracks while in the midst of the home buying whirlwind. This is why it is so important to have a solid grasp of the current real estate market, and a detailed plan on how you will proceed throughout the home purchase before you even begin your search.

Real Estate - Defining your dream home

One of the most important steps in preparing to buy a new home is deciding exactly what type of home you are looking for. Sit down and make a list of everything you are looking for in a new home. How many bedrooms do you need to comfortably accommodate you and your family? Are there any particular features you would like to have such as an updated kitchen or Jacuzzi bathtub? Is there a particular neighborhood you would like to live in? This is your wish list, so be thorough.

Real Estate - How much home can you afford?

Now is the time to sit down and realistically assess your finances. With your current income, less any recurring bills and a comfortable amount for incidentals, calculate how much you have available for a mortgage payment. Don't forget about taxes and insurance when calculating your home expenses. Next, interview potential lenders and obtain pre-approval from the lender of your choice. At this point, should have a good idea of how much home you can afford, and will be able to reasonably determine how many of your dream features you can afford.

Real Estate - Do you need a Realtor?

The decision on whether to hire a Realtor is truly a personal choice and depends entirely on your comfort level as a home buyer. If you have purchased a home before, or are purchasing a newly constructed or pre-construction home and feel comfortable negotiating with a builder on your own, a Realtor may not be necessary.

However, if you are moving to a new town or don't have time to research the market on your own, a Realtor can be very helpful. As a buyer, you are not responsible for paying a realtor's commission and a good Realtor will be able to quickly show you homes in your target price range that have the features you desire.

Real Estate - The search begins

Many buyers find the process of looking at homes and finding the home of their choice to be the most exciting and potentially rewarding events of the home buying process. This may be why so many of them make an emotional decision when choosing a home rather than carefully assessing the individual merits of each property. Keep in mind that no matter how much you may love a home, taking the time to thoroughly evaluate the property can save you time and a great deal of stress in the long run.

A professional inspector will be able to tell you if a property is structurally sound and whether you will need to make extensive repairs. Especially when dealing with an older home, you should always ask about electrical, plumbing, and heating systems. Also, be sure your inspector checks for wood rot, asbestos, lead-based paint, and mold. A major benefit to purchasing a newly constructed or pre-construction home is that everything is new, and most builders offer warranties that cover any unexpected repair costs.

Real Estate - Bringing it all together

By taking the time to make these essential preparations, you will enter the home buying process with confidence, and an ability to make informed decisions regarding your new home purchase. Prepared, educated buyers are less likely to choose a home based on emotion or purchase a home they can't afford. These buyers are also most likely to purchase the most home for their money and avoid costly repairs and remodeling. Remember the basics of being a smart home buyer and you will greatly increase your odds of finding your dream home.