7 Things to Do Before Buying a Home

For most people, buying a home in Roanoke is the largest financial transaction they will ever make. With that in mind, it's important to make the right preparations and do the proper research before buying a home -- in Roanoke or anywhere else for that matter.

It goes without saying that the home buying process will vary from one buyer to another. Some buyers have plenty of money to put down, for example, while others do not. Some buyers have excellent credit, while others are "credit challenged." And so on.

With that being said, there is a certain process to buying a home in Roanoke that most people will follow, in some form or fashion. For example, here are seven things you must do before buying your new home.

1. Study the home buying process.
By understanding the overall process to buying a home, you will make better decisions along the way because they will be informed decisions. Home buying lingo is a big part of this, so be sure to read through a few home-buying glossaries before you get into the thick of things. The Department of Housing and Urban Development (HUD) is a good place to start. Their website has a pretty extensive guide to the home buying process.

Helpful resource: HUD Home Buying Guide

2. Determine your budget.
Setting a realistic budget for yourself is a critical first step. This is the key to buying within your means and avoiding mortgage problems down the road. For starters, use a mortgage calculator (like the one on our website) to get an idea of how much you can afford to pay each month, and what that equates to in terms of a home price.

Helpful resource: Mortgage calculator on our site

3. Get your credit reports.
Credit has always been important for home buyers, but it's even more important these days. In the wake of the mortgage crisis that came to a head in 2007, most mortgage lenders have tightened their standards with regard to credit scores and mortgage approval. Start by getting a copy of your credit reports and reviewing them for errors (yes, you have more than one credit report). You can get copies of all three credit reports at one time (and for free) by visiting www.AnnualCreditReport.com.

Helpful resource: Credit score info at Home Buying Institute

4. Fix credit errors quickly.
If you find an error on your credit report, go to the company's website where the report came from (TransUnion, Equifax or Experian) to contest it. It can take time to clean up an erroneous credit report, so get started as soon as you spot the error. It's also wise to request your credit score (different from your credit report) through a website like MyFICO.com. This way, you can see where you fall compared to the national average, and whether or not you need to improve your score.

5. Start saving your cash.
This is one of the best things you can do before starting the home buying process in Roanoke, Virginia, and for two reasons. First of all, Roanoke mortgage lenders like to see that you have some cash reserves on hand. Secondly, you'll need cash reserves for any unexpected fees or costs that might arise during the home buying process, which is fairly common.

6. Get pre-approved for a loan.
During pre-approval, a mortgage lender will review your credit, finances, debt, etc. and conditionally qualify you for a certain amount of mortgage. Home sellers will take you more seriously if you have a pre-approval letter, and the process also helps identify any problems with your credit or other qualifying factors.

7. Get a home inspection.
Some buyers will ask, "Do I really need a home inspection?" Let me answer that with a resounding yes! It's always a good idea to get a home inspection prior to buying a home in Roanoke. A house is a significant financial investment. The last thing you want is to find a bunch of things wrong with the house after you've taken ownership. At just a few hundred dollars, home inspections are very affordable considering the peace of mind they bring.