HOW TO BUY FSBO: Ten Steps to Buying a Home

Choose your Step (click the step to go):

STEP 1 - How much can you afford to pay?

Get pre-qualified or pre-approved for a mortgage.

One benefit is that you’ll find out how much you can afford to pay for a house.

Another benefit is that when you find the house of your dreams and decide to make an offer, the seller will be able to take you more seriously if you have already been pre-qualified or pre-approved for a mortgage. Most sales contracts are dependent on the buyer receiving financing; if you’ve already completed that step, then your offer becomes very attractive to the seller. You’re a better bet than the other people who are interested in the house but haven’t started the financing process. It is legitimate for the seller to ask to see your pre-approval paperwork, or, if you don’t have any, it is appropriate for them to informally pre-qualify you by asking questions about your income and debt.

(Pre-qualified means that you’ve given some basic information to a mortgage lender and they’ve provided you with tentative documentation that you are able to buy a house in a certain price range. Pre-approved means that your mortgage lender has verified the information you have provided, checked your credit, and you have documentation that you are definitely able to get a mortgage in a certain price range.)

Go to STEP 2 - Find the Perfect Home