I'll be ready in about a year

  In speaking with a lot of would be first time buyers I hear the phrase “I think I’ll be ready in about a year”. 

OK that is fine.  I am not in a rush, and I think it works best when you aren’t either.  A year gives you time to plan.  During that time, you may be able to increase your savings and reduce some debt thus improving your credit score and your buying power.  For more information on savings, credit scores & home buying check this article.  

You can also use the time to learn about different areas. There are a lot of small towns, historic districts and parts of town that vary greatly from one another.  Getting to know them will help you zero in on what is best for you when you are ready to buy.  Even each of the newer home developments has different characteristics and amenities.  Knowing what really appeals to you or is a deal breaker will be helpful when you begin the hunt for the dream home.  Talk with your Realtor (hopefully me) about different areas, give them feedback & ask for suggestions.  Drive neighborhoods at different times of the day to see what traffic looks like at 10 AM or at 5:30 PM. 

Also, use this time to familiarize yourself with different types of mortgage programs and what the terms mean.  Understanding what it means to pay points, PMI, and what an ARM is can help you understand the best financial tools for your situation.  If you are a moderate income earner you can also look into qualifying & applying for any of the free money programs that I talk about here in an earlier post. 

Twelve months will go by quickly.  Becoming a more educated consumer can bring you lasting benefits with your home search.  After all, buying a home is a big step.  Being able to step into this endeavor with confidence knowing what you want and can afford will reap great rewards. 

Check back for more articles on home buying.  Can't wait? ... check this top 10 list of mistakes first-time home buyers make from SmartMoney.