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We are finally ready to put a bid in on the house. We received some information from the selling agent that someone is taking a third look at the house and really can’t determine which house to choose. So, maybe we have some competition for the place. Here are a few things to think about prior to making a bid on the house.

Get an appraiser! The $300 to $500 fee is so worth it. You really want to find out what the house appraises for. There are some that will just do a quick drive-by and some that will go inside look at the inside and look at it in detail. Just make sure that you do your research.

Get a pre-approval letter. Make sure you get your paperwork ready. It will definitely save some heartache near the end. Know how much you are approved for and how much you think you can afford. Typically, you don’t want to spend more than 33% to 40% of your paycheck. 40% is pushing it, but if you think you can do it, who am I to tell you, you can’t?

Do you have the earnest money? The earnest money is to ensure that you don’t back out of the contract. This money isn’t thrown away, but it can go towards your closing costs or whatever you may choose. Just have about 2% to 5% ready in cash or check to let the sellers know you are serious.

Get excited! This could be your next home! One of the biggest purchases in your life. Have some fun with this and learn from the experience. Don’t forget to do more research on what benefits you get from being a first-time buyer. There are all kinds of provisions in place to help the first-time buyer to get into their new home.

Anything else????