• 10.) Keep Your Money Where It Is.  It's not wise to make any large purchases or move your money around three-six months before buying a home.  This could make it difficult to get a loan.
   

• 9.) Get Pre-Approved for Your Home Loan.  There is a big difference in being pre-qualified and pre-approved.  Anybody can get pre-qualified.  Being pre-approved means a lender has looked at your financial information and they've let you know how much you can afford and how much they will lend you.  This will save you time by not looking at homes you can't afford.  Also allows you to shop for the best deal and interest rates.  Learn about junk fees, processing fees or points and make sure there aren't any hidden costs.
   

• 8.) Avoid a Border Dispute.  Know where your property lines are to avoid any potential disputes with your neighbors. 
   

• 7.) Don't Try to Time the Market.  Trying to anticipate the housing market is impossible.  The best time to buy is when you find your perfect house and you can afford it.  Real estate is cyclical, it goes up and down and then back up again.  So, if you try to wait for the perfect time, you might miss out.
   

• 6.) Bigger Isn't Always Better.  Everyone is drawn to the biggest, most beautiful house on the block.  Just remember, when you are ready to sell down the road, this will limit the number of potential buyers.  If you pay $500,000 and your neighbors pay $250,000 - $300,000, your appreciation is going to be limited.
   

• 5.) Be Aware of Sleeper Costs.  The difference in renting and home ownership is the sleeper costs.   People tend to focus on their mortgage payment, but they also need to remember other expenses such as property taxes, utilities and any association dues.  New homeowners also need to be prepared for repairs, maintenance and potential tax increases.
   

• 4.) You're Buying a House Not Dating It.  Buying a house based on emotions is just going to break your heart.  If you fall in love, you could make some bad financial decisions.  Go with your instincts and recognize a great house for a good value.  It's an investment, so stay calm and wise.
   

• 3.) Give Your House a Physical.  You wouldn't buy a car without looking under the hood.  Hire an Inspector.  This is your unbiased third-party opinion.  It is better to spend the money up front on an inspector, than to find out later you have to spend a fortune on repairs.
   

• 2.) The Secret Science of Bidding.  Your opening bid should be based on two things: what you can afford and what you believe the property is really worth.  A price that is fair and reasonable isn't going to offend the seller.  It all depends on what the market is doing at the time.  Look at what other homes have gone for in that neighborhood.
   

• 1.) Stalk the Neighborhood.  Before you buy, get the lay of the land.  Research the school districts and find out how far it is from the grocery stores, hospitals, etc. 

                                                               ~HGTV.Com

 

Documentation requirements vary, depending on the lender's own rules and the type of loan you are seeking.  Here are a few of the things your lender will ask of you.  Having these things ready will make the process that much easier.

• Copies of your W-2 - Show how much you've earned over the past two years, as well as, copies of your paycheck stubs for the past 30 days.
   

• Employment history for the past several years.  Include addresses of the companies you worked for and an explanation of any gaps between jobs.
   

• If you're self-employed, you'll need to provide complete copies of your federal tax returns (including all schedules) for the past two years.  You will also be asked for a year-to-date profit-and-loss statement and a current balance sheet for your business.
   

• The lender will also want to verify where you'll get the money to cover the down payment and closing costs.  So, expect to provide three months worth of statements for your checking and savings accounts, retirement-savings plan, stockbrokerage accounts and the like.
   

• If your parents or someone else will be providing part of the down payment, the bank will probably ask them to sign a "gift letter" that says the money won't have to be repaid.
   

• Finally, compile a list of all of your outstanding debts - along with the name and address of each creditor, the account number, the current balance and your minimum monthly payment requirements.

Pulling all of these things together can be a pain, but it's better to do it now than waiting until the last minute.