Debra,

If you are asking this question then it sounds like you have already made step number one: 1.. Decided if you are ready or not to buy your own home. However that doesn't necessarily mean that you will buy, because you also need to be consulted on what's going on in the lending community and the LOCAL real estate market.

Actually Debra, if you are really wanna make it interesting and are in for some action and excitement... call up any 3 lenders and any 3 Realtors then arm them w/ hand weapons and throw them into a square.. tell them the last man/ woman standing gets your business. Of course the winner may be in a coma and can't really perform his / her duties so they will lose out on your business in the long run, but i guarantee you just had yourself one heck of a Friday night! ha ha...

Ok, obviously that sounds like a sketch cut out from the Family Guy, but my point is that everyone is going to give you different view points from their perspective on which is the best. I like to make the whole experience fun and exciting since it's such a huge part of your life! In the past, what has worked out best for our first time home buyer clients is that they have sat down w/ me for a free consultation. We cover the whole process and explain what's usually the most successful path to take and explain why that is. Having a background in fiances we also offer to assist you with the loan process as well since that also can be such a complicated thing considering all the changes that are coming up.

Either way, lender first or Realtor first I don't believe it's going to really throw you completely off, but it certainly will if you are led by the wrong individuals so it really boils down to your personal gut feelings.

Best of luck and I would love to see you become successful home owners in our great city.

God bless,
Josh

Hi Debra,

You've got some great answers to get you started.

Your first step should be to get pre-qualified for a loan, you may even try talking to your current bank. This process doesn't mean you're stuck using this specific lender. Getting pre-qualified is important, because it will set the baseline for how much home you could possibly get a loan for, and if you have anything negative on you or your spouse's credit reports you can correct it sooner, rather than later.

If not, when you do find the right home, that you really like, I'm sure you won't want to find out you can't actually qualify for the loan, or the desired amount needed.

Second, do some research on the home buying process in general. There is no shortage of information online, that's for sure.

Third, interview a few agents, maybe ask them to explain the home buying process for you, or question them on the local market. The bottom line; you not only need to feel comfortable with the Agent you choose, but also confident that the/she will give honest advice and guide you through the process.

Yes, all Agents want to make a sale, but the vast majority would rather do right by their buyer, or seller client's, and earn their respect and trust.

If you would like to discuss the buying process, in more detail, or just need a second opinion on the local market before you commit to an Agent, feel free to email or call.

P.S.
Check out the web reference below, I'm sure it will help...

All the best,

Randy Pereira
Realtor / Relocation Specialist
Century 21 United - Northside

"Trust 2 Buy, Trust 2 Sell"
http://www.Trust2Move.com

One last thing you need to do. When you get a mortgage get it fixed rate only. No ARM that can change your payment so you can no longer afford your place. No baloon that drives you easily until one day you have to pay many thousands of $$$ you do not have. No interest only loans. Consider lengths of other than 15 or 30 years. You may find that a 23 year mortgage works well. Every year less you have to pay on a mortgage is thousands of $$$ you save in your pocket. Then if possible pay extra every month.

When you go fixed rate the price you pay will not change. Your mortgage will always be $ x until it is paid off. Only maintenance and taxes will cost you more. Be very sure that your jobs are secure. If you go into this kind of debt and lose a job it could cost you more than you wish to pay.

When you look at a house ask about the cost of heating, cooling, electricity, insurance ( can it even get insurance?) How old is it? The older the more chance of it costing more for heating and breaking down. A house built before the mid 90's will cost more for insurance.

How much are taxes? Different towns, cities, or counties could mean $1,000 or more difference in what you pay for property tax.

Does a house have 2x4, 2x6, 2x8, brick, concrete, or?? walls. Does it have insulation, if so what kind? Does it have energy efficient windows? How old is the roofing? The thinner the walls are made the more it will cost to heat or cool (if insulated)

Generally speaking you can afford a house that costs 3x your income. If you make $50k you can afford a house at $150k. You need to check your fico score. If it is low fix it. Pay off credit cards but do NOT close them. Save as much money as possible for a downpayment. Your total debt to income should not exceed about 1/3. You make $30 you should not end up owing more than about $10.

Once you get into debt on a house things will happen. The steps will break, the furnace will die, the roof will leak. You need to be prepared for these eventualities. If you figured that you could eat real cheap and afford a house forget it. You tear a pair of jeans at the same time your car needs brakes when the refrigerator dies and you are in serious trouble.

Talk to some people you know. Ask them about the kind of expenses they find on their home. Not the amount but the things. I guarantee there are some you did not consider yet. If there is anything you do not understand or are confused about ask questions. Then ask more questions. If you are not sure you are ready to buy wait until you are sure.

Never sign anything until you understand exactly what it means. When you do try to buy make sur you have contingencies ( opt-out provisions) that cover you being able to get insurance (check to see the history, it could be expensive on certain places), getting a loan AND the house appraising at the price. Be very careful about risking losing your earnest money. If things go wrong in negotiations you could lose it forever. Contingencies can protect it.

Look at http://www.city-data.com Plug in your town and state and watch as more data comes up than you ever expected to find. Look at http://www.zillow.com See how prices are changing in the area. Find all kinds of sites, search and educate yourself.

As far as I am concerned the first thing to do is to educate yourself about what this market really is. Then look at what it is likely to become. I posted several links that show some very unpleasant facts.

I do not say not to buy. I do say if you buy to realize taht you could still be able to lose a lot of money.

We just hit 10.2% unemployment today. We have about 36 million people on foodstamps. Loans are getting harder to find. FHA is having financial troubles.

I say that to make a point. Buying a house is like going to an auction. If you have one person who wants an item it goes cheap. If you have 3 dozen the price can go way above realistic value. Over the past few years prices went way out of reason. they are now returning to earth. But now, we have a lot less buyers. The buy and sell for huge gains is gone. Who will buy a house now and after they buy who will replace them to keep values ( prices) high or drive them higher?

http://www.housingwire.com/2009/10/19/27m-distressed-propert… almost 3 million now
http://www.bloomberg.com/apps/news?pid=20601087&sid=aw6_… 7 million foreclosures to come
http://www.businessinsider.com/henry-blodget-housing-market-2009-4
http://bubblemeter.blogspot.com/2009/02/how-robert-shiller-m…

Dunes had a really good reply. he covers the bases of buying. I am just trying to get you to look at what buying could mean financially. No one should try to catch a falling knife. It is to east to get hurt. If these prices drop 20% more and it is possible what would that do to you financially?

Think about everything you read here and elsewhere. Consider that realtors want to make a sale. Consider that non-realtors could be wrong. Then make your own decision and offer what you feel is right.

Ms Vega,

Congratulations to you and your husband. Congratulations for asking questions first rather than just charging ahead.

Adding to the replies already given is your question: take your time. No need to hurry.

When selecting a real estate agent, rely on your instincts. You know when someone is a fit for you.

When looking at homes, do not fall in love. Emotions are not part of the buying process.

Know the "perfect" home does not exist. You will have to settle for a little more here or a little less there to find the right home. You will know it when you walk in the door.

On my web site is some free information you can check out too: http://www.ChristianRealtySanAntonio.com .

Best wishes,

Dominick Dina, Broker/Owner
Christian REalty San Antonio

Hi, Debra,

What a great question! Here's what Buyers need to know:

1. You need to get pre-qualified or pre-approved by a good, solid lender. There are two reasons that this is your first step. First, it's important to know what your budget is. If you look at homes that are way over your limit, then you probably won't like the ones you can actually afford. That's no fun. Secondly, when you find that Dream House and are ready to submit an offer, you won't want to delay until the lender selection process is completed, because someone else may also have fallen in love with that same house. No smart Seller today will even consider an offer without an attached pre-approval letter from a recognized, solid lender. (New Home Builders have a little different process and more latitude than resales, but getting pre-qualified lets you know what price range to start with.)

2. Select a REALTOR® you can work with. REALTORS do this every day. We know the inventory of available homes, how the contracts work, what the process is, where the "traps" are, and we work for you, not the Seller, since we represent you as your Buyers' Representative. We can show you ANY home on the market, including most For Sale By Owner homes and New Homes from Builders. We have access to real-time data on what's for sale, and what nearby homes have sold for recently. That helps us to negotiate the best price and terms possible for you. Here's the best part - the Seller or Seller's agent pays our fee out of their listing commission. Only in rare cases does the Buyer pay Real Estate commissions. Ask your REALTOR to spell out exactly how this works. It's our professional duty to you to make sure you understand all the nuances of the process.

REALTORS already know the neighborhoods, neighborhood values, potential problems associated with particular areas (foundations, traffic, noise, crime, etc.). We cannot discriminate in any way, nor can we steer you to or away from a neighborhood based on ethnicity, age, religion, familial status or other factors, but we can tell you exactly what factors you should consider in each area and where to get the right data.

When working with a Home Builder, keep in mind that it is important to have a professional on your side of the table - that charming Builder Sales Rep represents the Builder, not you.

Your REALTOR will help you find the right home, guide you in your selections (with an eye on later resale value), manage staged inspections all along the construction process (this is another topic, but an independent Inspector is absolutely essential when buying a New Home), manage repairs and appraisal, explain the details of the closing process, and help you with the little things like utility connections, schools, etc. that can be overlooked.

There are few jobs in life more fun than helping someone find a perfect home. We help you to organize the process to do your search efficiently instead of wearing yourself out, and hold your hand all the way through the process. Then we celebrate the result! All along the way, you have a professional on your side. Our job is not to SELL you something, but to help you FIND exactly what you want, and help you get it at the best price and terms.

If you would like a free Buyers' Guide that explains all of this in more detail and a copy of Gary Keller's new Best Seller - "My First Home", contact us or visit our website at http://www.TellEllen.com, and we'll be happy to send you one without cost or obligation. If you are new to San Antonio, we will also send you a CARE Package with relocation guides, school and community information and other useful items. If you prefer to talk first, we'll gladly accept your call.

Hi Debra,

The last answer is full of good advice and links to help you get started. I would also add---spend a couple of Sunday mornings weekend nights watching HGTV. :Property Virgins" will show you what similar people just like you go through once you get to the looking stage. And that may help you figure some things out. Nothing can replace a quality agent who has been in the business and is experienced especially with first time buyers. They will be patient and explain everything. Ask for referrals from co workers,friends,family and interview a few. I have a buyer/seller education series on my website that might give you some insight. Please check out all the videos! http://www.JimMellen.com and click on the tab on the top bar "Buyers/Seller education series.

Debra

In my opinion for anyone who is beginning to learn the Homebuying process the Hud site has excellent steps to review...Nine steps to buying a home

1. Figure out how much you can afford
2. Know your rights
3. Shop for a loan
4. Learn about homebuying programs
5. Shop for a home
6. Make an offer
7. Get a home inspection
8. Shop for homeowners insurance
9. Sign papers

and also has many resources/tools to begin learning the type of questions you need to ask when selecting a loan source and an RE Agent....http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home

If you would like to review the current Fed loan programs then this Fed gov. site is the place to look....You can get specific information, compare options, or take a short questionnaire to determine your eligibility for each program......http://www.govloans.gov/govloans_en.portal?_nfls=false&_…

If you just want to Browse Actual Foreclosures...You might wish to check out the Bank/Gov sites created to give the public access to view the Listed Foreclosures/Properties for sale and to provide information on the purchase process used plus much more information it's Free and updated constantly...Sites like..

.... http://www.wamuproperties.com/ .... http://www.hud.gov/homes/index.cfm

https://www.citimortgage.com/Mortgage/Oreo/SearchListing.do ...

The links to all of these Bank and Gov. sites can be found here.... http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp http://www.biggerpockets.com/bank-reo.html

If you ever need to find Public Records this search engine might come in handy.. http://publicrecords.onlinesearches.com/ ... to help find things like.... http://maps.bexar.org/imf/sites/cc_foreclosure_beta/jsp/laun…

When you decide to hire the services of an RE Agent to assist you in the process you will being deciding who to work with on what may be the largest financial obligation of your life so choosing wisely will be extremely important to you.

You need to inform yourself enough about your market and the process to be able to ask the questions necessary to ensure choosing a Professional who will work with you to attain your goals...Do not just hire an Agent, choose an Agent carefully and wisely, there are many available so give your choice the time it deserves as one of the most important decisions you may ever make...Use the internet, be informed....

Good hunting, Dunes