How to succeed in buying

Homebuyers Alli and Mike Nevin were a real-estate agent's and lender's dream.

The couple moved to a larger house in Melbourne, Fla., earlier this year after selling their previous house. They let their real-estate agent set the asking price and the house sold in about a month.

They found their new house through an open house advertised in the newspaper.

They'd been financially responsible, living well below their means, so they were able to make the stretch. They bought their new house for about twice the selling price of their old home.

"We felt it was worth it to get a good deal on a house we could live in forever," said Alli Nevin, a psychologist. Her husband manages an auto-service center.

Would-be homebuyers can set themselves up for success by following some simple steps now.

• Step No. 1: Check your credit report

"There are so many little things out there that people don't know about," said Karen Skurla, assistant vice president for Birmingham, Ala.-based Regions Bank.

Check the report, and you might find you're getting nicked for a 5-year-old cellphone bill you've forgotten about. Medical collections are the most common surprises.

After clearing up any issues, keep your credit in top shape, advised Bobbie Dyer, branch manager for Wells Fargo Mortgage in Melbourne. Pay bills on time, and keep credit cards well under their limits.

Pay down credit-card balances but don't close the accounts, Dyer said. It's better to have a lot of available credit.

• Step No. 2: Talk to a lender

A short meeting several months before you plan to buy can give buyers a realistic price range to look in so they don't waste time — and end up disappointed. A lender also can help map a plan for saving any cash needed for closing, and steer potential buyers away from mistakes.

A big mistake: Buying a car before applying for a mortgage. Car loans usually carry big monthly payments, which reduces the amount of credit available to the buyer for a home loan.

• Step No. 3: Understand the dynamics

If you own a house, it may have slipped in value during the past year. Don't dwell on that, but realize that the same price decrease has taken place on the property you're buying. It could be time to pick up a bargain.

• Step No. 4: Get your house in top condition

There are lots of homes to choose from — including new construction. So paint, repair and declutter.

Hart recommends "staging" for best effect during showings. She uses a professional company to stage her listings, adding furniture and decor to key rooms, such as the kitchen and master suite.

"It has to show warm, it has to show cozy," she said. "It's going to be their home."

That's especially important if the home is vacant, and otherwise might appear cold and stark. The payoff: a quicker sale, Hart said.

• Step No. 5: Use a professional

The real-estate agent — even when working for the buyer — usually is compensated by the seller.

So there's no reason not to take advantage of the agent's guidance, according to Scott Bray, branch manager of Contemporary Mortgage Services in Melbourne.

• Step No. 6: Start looking

Think about what schools you want your children to attend and what neighborhoods are near your workplace. Watch for houses that come on the market in those areas.

Take your time, Bray said. Interest rates and prices are low now.

Don't feel you have to buy all that you can afford right now, Bray said. A better plan for success is to buy what you're comfortable with, and trade up in a few years.

— Anne Straub, Florida Today