| Buying your own home is one of the largest | | | | times and availability of public transportation. |
| purchases you will ever make. What should you do | | | | When choosing between homes, look at the size, |
| to get ready? | | | | number of bedrooms and baths, design and amenities. |
| The key to a successful home purchase is making | | | | Decide what your "must haves" are and what the |
| your choice through your finances, not your | | | | "nice to haves" are. For example, you might be willing |
| emotions. This takes research and patience. Here are | | | | to trade a large kitchen for a swimming pool. |
| five steps that can help you make a good decision. | | | | 3. Negotiate for the right price. |
| 1. Decide how much you can afford. | | | | Once you have the funding in place and have found a |
| You should look at your finances in order to | | | | nice home, make an offer. Your realtor will help you |
| determine how much you can afford to spend on a | | | | in submitting your purchase contract. This will include |
| home. Look at your income, assets and current debt | | | | the offer price and any contingencies, such as home |
| level. You aren't looking at what percentage the | | | | inspection and appraisal. |
| lender says you can afford, you are looking at what | | | | The seller will either accept your offer, reject it or |
| your finances dictate. If your lender says you can | | | | make a counter-offer. Negotiations can go back and |
| spend $1,200 a month, but you know you are | | | | forth until both parties are satisfied. Don't get caught |
| struggling with a rental of $1,000 a month, you | | | | up in having to get the home and loose sight of how |
| probably know that you don't need any more than | | | | much you can afford. You don't want to pay more |
| you already have. | | | | for the home than it is worth. |
| You should also consider the down payment and | | | | 4. Pick out of mortgage. |
| closing costs. Lenders are usually looking for a 5% to | | | | There are many types of mortgages to choose |
| 20% down payment. | | | | from. The basic two are fixed rate and adjustable |
| Don't overlook other expenses, such as property | | | | rate. Fixed-rate mortgages have interest and monthly |
| taxes and homeowners insurance. Your total interest, | | | | payments that remain the same throughout the life |
| principal, taxes and insurance payment should not | | | | of the mortgage, which is usually 30 years or less. |
| exceed 28 percent of your gross monthly income | | | | Adjustable-rate mortgages are also called ARMs. |
| according to lenders. Your total monthly debt, | | | | They come with a lower initial rate than fixed rate |
| including your mortgage, autos, student loans and | | | | mortgages, but the rate and payment amount can |
| credit cards should be under 36% of your gross | | | | move up and down with the financial index. This can |
| income. | | | | happen as often as twice a year. |
| You don't have to have a house in mind before you | | | | 5. Close on your home. |
| apply for a mortgage. It is a good idea to be | | | | The closing, or settlement, is the point at which you |
| pre-approved when you are looking for a home It will | | | | finalize the transaction. You walk in with a check and |
| give you the security of knowing that you have | | | | out with your keys and the property's title. You can |
| funding and the buyer will know you mean business. | | | | expect to pay between 2% and 5% of the purchase |
| 2. Look for what you want. | | | | price towards closing costs. These costs include fees, |
| Spend the time to find the home you want. Find a | | | | services and points paid. |
| professional realtor that can help guide you through | | | | After closing, you can settle in to your home and |
| the home search. Start by checking out | | | | enjoy all of your hard work. Five simple steps and |
| neighborhoods and then narrow it down to a house. | | | | the house you dreamed of is yours. |
| You should consider the schools, parks, commuting | | | | |