"I'm going to buy when a good deal comes up"

This is one of the most common statements I hear from First Time Homebuyers (FTH) - "I'm going to buy when a good deal comes up." What does this mean? Well, to me, it means that you're not even close to buying a home.

Why? Because this tells me that the buyer is not committed and just "shopping around" and because the buyer probably has no idea what a good deal is. I've helped many FTH and just about every single one says this, yet, when I actually show them good deals, they never buy the place. In fact, they don't even consider submitting an offer.

I was perplexed the first few times this happened, but then I was able to figure out why - because the "buyers" were not ready. You see, a home isn't just something you buy because everyone else is doing the same or because you're told to do so. It's a major investment. Thus, you need to be truly committed and believe that buying a home is a logical step in progressing your life. Further, buying a home isn't just a financial decision; it has to fit your lifestyle as well.

So when are you ready to buy a home? Well, if you're serious, then you need to know:
1) how much you can afford
2) what general neighborhood(s) you want to live in - try to limit to less than 3
3) what type of homes you can get in the neighborhood

I know this is a lot, but you're not ready unless you know these things.