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