Real Estate Roller Coaster of Doom?

I'm sure most of us have noticed just how variable the housing market is. My husband and I are currently in the market for our fist home, and have noticed the roller coaster in the past few months. Homes that were in one price range last week my change a drastic amount by the end of this week. So, how do you know when is the right time to buy? A few tips can help you make the most of the home buying experience.

1. Make sure you have clearly defined goals in a home. Find some quiet time to sit down and make a list of things you want in your ideal home. Note size, property type, zoning, commute and neighborhood you desire. That will really help you narrow down your home, and to make sure that you focus in on, and strive for, those things you desire most when you do start your search.

2. Get pre-approval from a mortgage company first. Pre-approval is really a cementing factor in a lot of transactions. If two similar offers come up for the same property, the one with a pre-approval letter attached will come out ahead 99% of the time.

3. Check out your realtor. Just as in any other facet of life, there are a lot of unsavory real estate agents out there. Since most of them work on a commission basis, some of the dishonest ones will tell you what you want to hear in order to make a sale, often omitting or bypassing pertinent information on your pending home. Make sure to check out their licenses, qualifications, and history to find an agent that's a good fit.

4. Know your own finances. Want a $250,000 home but only bring home $1200 a month? It's not going to happen. As appealing as that flashy new home may be, don't overextend yourself when it comes to your mortgage. There are a vast number of options for financing your new home, and you may be able to get into a house at a certain payment today, but if that home has a variable interest rate, in a few months your payment may be more than you are able to realistically take on. Make sure your credit history is correct as well, so no unexpected flaws pop up when you sit down with the lender.

5. Patience, grasshopper. As much fun as it isn't to wait, the purchase will take time. You have to find a home you like, investigate the home, straighten out your financing, make an offer, wait for the offer to be submitted...well, you get the idea. It's not something you can expect instant gratification on; patience in this matter is key. So, sit back, relax and wait. All good things happen in due time.

Buying a home is a dream for many families. Having a place you can truly call your own is something we all strive for, and knowing what your up against before you dive into it will help make the process go as smoothly, and quickly, as possible.