Web Tips Useful In Buying A Home

Article by John Adams in the Atlanta Journal Constitution:

Sunday, June 28, 2009

According to statistics published in 2008 by the National Association of Realtors, 87 percent of all home buyers used the Internet as an information source in their search for a home. Frankly, I am surprised it’s not even higher than that.

There are so many useful things that a buyer can learn on the Internet, and most of it is free. Here are three of the most worthwhile places you may want to visit before you see your first house in person:

1. AnnualCreditReport.com is the federally mandated site where the three national credit repositories are required to give you one free copy of your credit report each calendar year.

This site is a good place to start because much of the home-buying process revolves around financing. And your success at obtaining a loan is directly linked to the information contained in your credit history reports maintained by Equifax, TransUnion and Experian.

Because the process is based on your name and address, and because many people have common names (like John Adams), mix-ups often occur. And if the misplaced information is derogatory, you may be unable to qualify for the loan you need.

The free report will not include your credit score but will reveal the core data used to calculate it. Typically, the agencies will respond to reports of errors within 30 days.

2. Bankrate.com is one of many sites that offers free loan prequalification tools to help you gain insight into how big a loan you can afford and what your monthly payments will likely be. While at its site, my advice is to stick to its helpful mortgage calculators. I have found the lenders who advertise most heavily on Bankrate don’t always have the best rates available.

In addition, I like Bankrate’s commentary on interest rate direction and how to save money in the borrowing process.

3. Finally, at Realtor.com, don’t enter your zip code, instead, look down the left side of the start page and click “Advice & Ideas” and then “Real Estate 101.” Once there, click “Buying,” and you will find a world of informative articles and strategies designed to help you find the right house in the shortest time possible.

John Adams is a broker and investor. He answers real estate questions on radio station WGKA (920am) every Saturday at noon. For more real estate information or to make a comment, visit www.money99.com.