You may have already heard that purchasing a home is often the single biggest purchase you will make in your life. You want to make sure that you make a thoroughly educated decision so take advantage of the abundance of resources and databases available to consumers in today’s market. There is no shortage of tools that can aid you in investigating and understanding everything from financing possibilities to budget preparation to neighborhood insights.

Homeownership is one of the most effective means of building personal wealth. In addition to the tax benefits available to most homeowners the resale value of a home tends to increase over time. Resale value will of course depend on the condition of the home but also on features of the surrounding area. That is why a COMPASS REO agent will make data on home value trends in neighborhoods that interest you readily available and also advise you on the characteristics of each home along with its surroundings and how these may affect resale value.

If you are serious about finding your dream home then the first major step is to get pre-approval from a qualified lending institution. Unlike pre-qualification which only establishes how much you are able to pay for a house, pre-approval is an in depth inspection of your credit and financial situation which is used to guarantee a specific loan amount and monthly payment. Shop around to ask several lenders about the services they offer and their associated fees. There’s no problem in trying to find the best interest rate available but beware “good” rates that come with poor service and high fees. Find a lender you can trust who will help you understand the math involved in estimating how much you can spend in addition to giving you a clear idea of your credit score, your down payment, and closing costs/additional costs.