Home Buying Tips
		If you are thinking of buying a home there are a few things that you need to be aware of before you start.  Like shopping for anything else it's a good idea to do your homework before you make the purchase. How Much Can You Afford Create Your "Wishlist" Find a Real Estate Broker Mortgages and Homebuying Programs Shopping for a Home Home Inspections Appraisals Homeowner's Insurance Settlement or Closing Find out How Much Mortgage Can You Afford You can save yourself a lot of wheel-spinning if you take a minute to figure out how much mortgage you can afford. Generally, a lender will want your monthly mortgage payment to total no more than 29% of your monthly gross income (that's your monthly income before taxes and other paycheck deductions are taken out.) You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford. Follow our tips below and use this simple mortgage calculator to see how much you can afford in a mortgage payment.  Create Your "Wishlist" Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your real estate broker, too. What part of town (or country) do you want to live in? What price range would you consider? No less than but no more than. Are schools a factor and, if so, what do you need to take into consideration (e.g., want specific school system, want kids to be able to walk to school, etc.)? Do you want an older home or a newer home (less than 5 years old)? What kind of houses would you be willing to see? One story  2 story  split foyer  bi-level  tri-level townhouse  What style house appeals to you most? contemporary  traditional  southwestern  colonial  no preference How much renovation would you be willing to do? A lot A little None! Do you have to be close to public transportation? yes no Do you have any physical needs that must be met, such as wheelchair access? yes or no Do you have any animals that will require special facilities? yes no If so, what? The Exterior: lot size fenced yard Garage or  Carport Patio/deck Pool Outdoor spa Extra parking Other buildings (barn, shed, etc.) The Interior: How many bedrooms do you need? How many bathrooms do you want? How big would you like your house to be (square feet)?  Air conditioning Wall-to-wall carpet Ceramic tile Hardwood floors Eat-in kitchen Separate dining room Formal living room Family room Greatroom Separate den or library Basement Separate laundry room Fireplace Workshop No interior steps Spa in bathroom Lots of windows (light) Community features Do you want to live in an area with a Community Association? yes no What else do you want in your community? Community pool Golf course Basketball court Tennis courts Gated community or doorman Clubhouse/activities 18. Are there any other special features or needs that you must consider when you’re looking for a home? Find a Real Estate Broker You'll want to start searching for a broker as soon as you decide to buy a home. Talk to several and find someone you think you'll be comfortable working closely with. Many of your friends and relatives have probably bought and sold their homes through brokers. Ask them who they used and what their experiences were. You can find out which brokers specialize in the kind of home or the area you want by looking in the Yellow Pages or your local newspaper's classified real estate ads. Or drive through neighborhoods and note the names of brokers on "for sale" signs. When you talk to prospective brokers, ask questions about the areas and types of homes in which you're interested. Do they seem knowledgeable? Most important, is their personal style a good fit with your own? Mortgages and Homebuying Programs Many different kinds of mortgages are available to you. Read about them, and make sure you understand the pros and cons of each. Your real estate broker can help you. HUD offers some special homebuying programs. Also, many local governments offer special homebuying programs to help low-income homebuyers. Shop around - you may be surprised at all your options. Shopping for a Home Now you really begin house-hunting. Your real estate broker will be able to find listings for you, based on your wishlist. But don't stop there! You can do your own looking, and then ask your broker to show you the house. Start with the Internet. Pick up real estate flyers at local grocery stores and convenience stores. Read the real estate sections of your local newspaper. Drive around neighborhoods that interest you and write down addresses where there are "for sale" signs. Go to open houses. Try everything! Home Inspections When you make an offer on a home, it's a good idea to make your offer contingent on a home inspection, conducted by an independent authorized inspector. You will have to pay for this inspection yourself, but it could keep you from buying a house that will cost you far more in repairs, down the road. If you are satisfied with the results of the inspection, then your offer can proceed. If you aren't,you may want to negotiate, asking the seller to pay for certain repairs or asking for a lower price. Appraisals Your lender will require you to get an appraisal of the house you want to buy, to make sure it's worth the money that you're borrowing. You may select your own appraiser, or you may ask your real estate broker to help you take care of that.   Homeowner's Insurance Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs. Settlement or Closing Finally, you've gone through the whole process, and you're ready to go to "settlement" or "closing." We know you'll be excited, but be sure to read everything you sign! And before you go, read this important information about your rights.