In a buyers market or a sellers market, first time homebuyers as well as seasoned homebuyers should always be smart when shopping for a new home. In a buyers market where there is so much inventory to choose from, potential buyers can easily lose their focus. In a sellers market, there isnt enough inventory and homes go under contract so quickly, sometimes theres just not enough time to really think clearly and make wise decisions. Regardless, smart buyers need to be cautious about making an expensive mistake when buying real estate. Below are my five top tips that every homebuyer can make use of.

1.Be sure to get pre-approved for a home mortgage and most importantly, have it in writing. Most buyers need some help in the form of a mortgage for purchasing the home. The smartest homebuyers get this out of the way first before even starting to look at homes. Finding out what you can afford and feeling comfortable with your estimated monthly payment could be two different things. Some people are not willing to fork out on a monthly basis what the bank says they can afford. Its best to know that dollar number and accept it before entering into a contract and going into shock later. In addition, finding out earlier than later that there is a credit issue that needs to be cleared up will make all the difference in the world once you finally find your dream home. Potential sellers will not wait for you to clean up your credit. Be sure your final document from the bank says it is a pre-approval letter and not just merely a pre-qualification. A pre-qualification is nothing more than a maybe.

2.Work with an experienced real estate agent. Many new agents have entered the market in the last year and have little to no experience or mentoring help from the Broker. Check references and ask friends and family for a referral. Call the local real estate office in your town and ask for a recommendation. Visit their websites. Are they well organized and professional? Set up some time with at least three agents and speak to them about your needs. Once you do that, you will have a good idea of who you trust and who you want to work with. Keep a supply of their business cards on hand with you just in case you visit any open houses or model homes. It doesnt cost you any more or any less to have your own real estate agent, no matter what you are buying, whether it is a newly constructed home or a resale.