Preparing to buy a new home? The home buying process can be very frustrating and lengthy. Be ready to search, negotiate and possibly being outbid on your dream home

But if you can devote your undivided attention, time and energy to the cause, you can make sure you land the house that is right for you. And if you follow the following tips you can’t possibly go wrong:

Buying a home and selling it soon after can see you losing money considering the transaction costs involved, so make sure you are certain you’ll be staying in one place for at least a few years and your career moves wont see you needing to move suddenly.

2. Find a realtor.

The internet can provide you access to home listings but unless you know what you’re doing, you would be better off using a realtor.

A realtor will provide you an invaluable insight to the process of buying a home that you might otherwise not have if you were to do this on your own.

Use an exclusive buyer agent preferably as they are more likely to have your interests at heart and can help you with the bidding process.

Realtors also tend to have access to the Multiple Listing Service, which would be beneficial to the whole process.

3. Aim for a home you can actually afford.

Usually you can buy a house to the value of about two-and-one-half times your annual salary. But ideally you should aim for a mortgage where you pay no more than 36% of your total monthly income, otherwise you will find yourself struggling to meet repayments. So make sure you buy a home that fits your budget.

If you’re going to buy a home financed by a mortgage, it will be in your best interests to ensure your credit history is as clean as possible. Get a copy of your credit history a few months before you start your house hunting and check that the facts are correct, fixing any problems you may discover.

A bad credit rating will have you stuck with a high interest rate on your mortgage whereas if you have a credit rating of at least 680, you will qualify for a low rate since mortgage lenders will consider you a prime candidate.

If possible, delay buying a house for six months while you take measures to shore up your credit rating.

5. Get a lower interest rate with a down payment

A down payment or deposit can help you secure a low rate mortgage as compared to not paying a deposit at all. Additionally, if you pay the usual 20% down payment, you wont have to pay private mortgage insurance.

6. Don't worry if you can't afford the 20 percent down payment.

Some public and private lenders may still be able to offer you low interest mortgages even if you make a down payment of as little as 3% of the purchase price.

If you plan to stay in the house for a long time, opting to pay additional points at closing in exchange for a lower interest rate might save you a lot of money in the long run, so consider this option if its available with your mortgage, which it usually is.

8. Get pre-approved for your home loan

Getting pre-approved will put you in a great position to make an offer for the house you find straight away whereas if you don’t have the finances in place already, you might end losing the house to someone who has. 

Find out as much information about the neighbourhood as you can to make sure it’s the kind of place you would want to stay. And if possible obtain a written comparative market analysis from your realtor or agent to see if the asking price of any home that has caught your attention is fair. This information can also help you with the negotiating and bidding process as it gives you a general guideline of prices.

10. Buy in a district with good schools.

Even if you don’t have children or plan to have any, buying in a district with good schools will boost your property value if you ever decide to sell.

11. Buying Foreclosed Homes

Buying foreclosed homes is an option you might want to consider since it can allow you to get your dream home at a cheaper price compared to the market value, so it is an option worth looking at especially now when theres so many such houses on the market as a result of the subprime mortgage crisis.

12. Hire a home inspector

While the mortgage lender will carry out a home appraisal of their own, hiring your home inspector, preferably by a member of the American Society of Home Inspectors can highlight any problems that could require costly repairs down the road.

13. Homeowners Insurance and Home Warranty

This is entirely up to you but knowing in advance might help. Some homes in the flood zone or in earthquake-prone areas will require an additional policy to cover against any possible damages.On the other hand, a home warranty might be needed if you’re buying an older home.

Once you’re satisfied that you have covered everything listed above, it is time for you to present an offer.