This is a great time to buy a home. Prices have leveled off and, in many cases, even dropped from their all-time high just a few years ago. What does this mean for the first-time home buyer? Well, possibly more home for your dollar!

When considering your first home purchase, there are a lot of things to consider before you step out the door to begin your home search. First and foremost, talk to a home mortgage lender to see if you qualify for a home loan, and what dollar amount you might qualify for. In a short discussion where you provide some basic information regarding your finances, your lender can provide a conservative ball-park estimate of the loan amount you may qualify for. However, in order to obtain specifics and actually know for sure the price range of the homes you may be interested in purchasing and actually submit a purchase offer, you will need to have loan pre-approval.

What is Loan Pre-Approval?
Loan pre-approval is the process by which you submit a loan application detailing personal and financial information such as your current residence, your occupation and place of work, income, assets and monthly expenses. Your lender reviews the details of your application to determine what loan amount you may qualify for, and your options for loans such as fixed, ARM (Adjustable Rate Mortgage), VA (Veteran’s Administration) loan, down payment options and requirements, and/or any other programs currently available to homeowners. Many home sellers will not even look at a home purchase offer from a buyer unless it accompanies a pre-approval letter from their lender.
Why is pre-approval so important? Loan pre-approval not only allows you the comfort of knowing how much house you can afford, but it also shows the home seller that you are serious in your effort to purchase their home. It also usually makes the escrow process run alot smoother when the lender has all the necessary paperwork and approvals in place in a timely fashion. Again, many home sellers WILL NOT consider a home purchase offer without lender pre-approval. This of course does not apply if you are paying cash for your home.

Once you have obtained lender approval for your home purchase, you can easily search for homes using my FREE Multiple Listing Service (Click here).  Through my free service, you can sign up to receive the latest listings directly to your email box, and know that I am just an email or phone call away.  I will also search for homes within your price range to your specifications, and we can set a time to view the available properties of your choice. Some things to consider when searching for homes:

• Location
  Do you commute to another area for work? Is easy access to freeways, rail or bus stations important to you?
• Old or new?
  Some people love old neighborhoods because of their charm, or perhaps they remind you of another time or place in your life. Older homes and neighborhoods can be great for first time home buyers as the neighborhoods are already well established. In many cases such amenities as room additions, upgraded landscaping and pools have already been built, so the homes are usually more ready to move into without incurring the cost of installing upgraded amenities.
  Newer neighborhoods however do take advantage of the latest in architectural design and materials, and, since they are new homes, the upkeep and deferred maintenance is pretty much non-existent. New homes usually come with a warranty from the builder (Which may vary from builder to builder. If you have questions about new homes and their warranties, contact me).  Most new homes, unless otherwise specified by the builder, do not come with such amenities as window coverings or landscaping, so you will need to include those items in your home purchase budget.
• Are schools important?
  Checking with the school districts in the area you wish to move to may help you determine where you want to move. Many parents are concerned about the quality, test scores and overall value of the schools their children will attend. It is important to verify with the school of your choice where their boundaries lie as they may change from year to year.
• Single Family Residence (SFR), condo or townhouse?
  Many of us dream of having our own little piece of land to call our own; with a yard for the kids and maybe a pool, a built-in barbeque, etc. But remember that single family residences do require maintenance of landscaping and upkeep. If you’re not the maintenance type, you might consider a condominium or townhouse. Drawbacks: You’re sharing common areas and perhaps a wall or two. Pluses: Condos and townhomes are usually less expensive than single family residences and the common areas, pool and landscaping are taken care of by the homeowner’s association.
• Location, location, location!
  Buy a home for the things you can change, not for the things you can’t. Corner houses, homes backed up to (or on) busy streets, homes next to empty fields, backing power lines, etc. might be slightly less expensive, but in the long run make sure you ask yourself if you will be happy there should you wish to spend the rest of your life in this home. You can always add rooms, change colors, carpeting, landscaping, add a swimming pool and more, but you can’t pick up a house and move it from a busy street corner.
• Check it out
  Check the areas that appeal to you by driving through the neighborhoods at different times. Check to see how close schools, shopping and commuter access are to your desired neighborhoods. Check with the local police department and inquire about the neighborhood as well.

Remember, if you have any questions at all, you can always contact me and I will be more than happy to answer any questions you may have.

Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com.