There?s absolutely nothing wrong with not being able to buy a house. I am a Realtor and an advocate of home ownership, who is currently renting a home. Of course, I would love to build equity, feel the security of having title to my own piece of earth, or simply have a real interest in remodeling my kitchen, but I am financially unprepared for such a responsibility.

    Instead I?m happily setting myself up to take on this responsibility by working hard, paying off debt, saving money and getting my files in order. One day I will have everything in place so that when I enter into the home-buying process, I will have all the right bargaining chips.

    I?ve seen firsthand, through the experiences of my clients, how not having one?s affairs in order can waste time and money. I have seen many people spend so much time finding the perfect home and the best deal, only to be held up or shut down by the banks.

    Wasting time is not smart, if you?re in the market to buy. It can cause you to miss out on a once-in-a-lifetime deal. Incorrectly priced homes sit ages, but the good deals go fast. It?s important to do things in the right order, and have all your ducks in a row, so you can capitalize on shotgun situations.

     If you want to buy property, first ask yourself these four things:

    How much debt do I have?
    How much is my income?
    How stable is my income?
    How much do I have saved?

    If after honestly answering these questions you still feel comfortable taking on a mortgage?the loan amount, plus property taxes, home insurance and interest?then you may be ready to begin the process of buying property.

    Many people assume that the home-buying process begins by calling a real estate agent and embarking on a search for their prospective home. Unless you are planning to pay for the total cost of your property in cash, calling an agent as the initial step in the process will only waste time.

    Instead, it is of first importance to call a mortgage broker and obtain a pre-qualification letter from a bank. A prequalification letter is a tentative calculation of the maximum loan amount for which you could qualify. This will help you determine your loan eligibility and price range. Some property owners insist on being provided with your pre-qualification letter before allowing you to view or make an offer on their property.

    Typically, mortgage professionals will take your application for pre-qualification free of charge. They may want to you to apply over the phone, on-line or in person. Along with the application, the loan officer may ask you to provide very specific documentation, such as: check stubs, tax forms, bank statements, letters from your employer, and so on. To save yourself frustration, before even calling a loan officer, have as much of your financial information and documentation at hand. No matter how frustrating you think the loan process is going to be, you end up wishing it was that easy.

    After securing your pre-qualified loan amount, breathe a sigh of relief. Now you know your price range. At this point, you?re almost ready to call a Realtor and begin the search. It?s almost guaranteed, however, that the first time you call a real-estate agent they?re going to ask you what kind of specifics you?re looking for in a home. Rather than letting this be a gut-instinct kind of answer, before you call take some time to think about and talk over the type of home you desire, and the type of home you can handle. It?s important to make this distinction, because, for example, some people love the idea of living in a historic home; but aren?t quite ready for the responsibility. An old house is a perpetual project, with something always in need of renovation or repair. Furthermore, old houses cost an exorbitant amount of money to heat in the winter. Similarly, some dream of owning a horse farm or waterfront home; but aren?t ready for the energy and expenses these dream homes take to maintain. Check your dreams with reality, to make sure you don?t end up owning a nightmare.

    Besides choosing the type of home, there are many other specifications to consider: the material you prefer for siding, the method you prefer for heating/cooling, number of bedrooms and baths, kitchen size, how much yard, how much garage, and so on. Think about these things in detail, make a list and talk it over with your family. Then call a real-estate agent.

    This article provided courtesy of our sister site: Beaufort County Now