Armed with your
down payment and your
pre-approved mortgage
loan, the next step is
finding the house that
will best meet your
family's needs. With
realistic expectations,
patience, and plenty of
research, you'll be well
on your way.
Once you narrow it
down to the
neighborhoods you like,
you'll want to determine
the maximum house price
you can afford. Even
though you're
pre-approved for a set
loan amount, it doesn't
mean you can afford it.
You'll want to factor in
other expenses,
including retirement and
college savings,
vacations, and home
maintenance and repairs,
when you calculate how
much you can afford for
a monthly payment. And
don't forget to budget
for homeowners insurance
and property taxes.
Next,
differentiate your needs
versus your wants. You
need three bedrooms, but
a fourth room would be
nice for a play room or
guest room. You need a
two-car garage, but a
larger one would be nice
for storage. You need a
functional kitchen but
want hardwood floor. You
need two bathrooms but
want a luxurious master
suite. You get the
picture.
As you begin on
your house-hunting
venture, you may want to
prepare a checklist,
perhaps in a table form
on your computer. Break
it down between exterior
and interior
characteristics. Make
notes on each feature
and give each a 1 to 10
score.
Some of the
exterior features to
rate might include size
of yard, quality of
fence, paint condition,
roof condition, window
conditions, garage, back
yard. When it comes to
interior, think about
square footage; the
floor plan; condition of
walls; the size,
quality, and
functionality of the
various rooms; and
closet and storage
space.
Your checklist
should also include any
other general factors
you deem important - the
amount of traffic, the
appearance of the
neighborhood in general,
safety in the area, the
reputation of local
schools, etc.
Meanwhile, Freddie
Mac, the
stockholder-owned
corporation chartered by
Congress in 1970 to
create a continuous flow
of funds to mortgage
lenders in support
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of homeownership and
rental housing, and
other industry experts
make additional
suggestions, including:
Take a camera with
you to capture an image
of each house you look
at that makes it to the
"maybe" list.
Don't make a hasty
decision, especially if
you feel yourself
becoming guided by
emotion. Selecting a
home takes time,
thought, and analysis.
You should carefully
weigh the pros and cons
of each house you like.
Review your
checklist and notes and
compare it against your
needs, wants, and
budget.
Bring your spouse,
friend or family member
with you to get a second
opinion. They may notice
a shortcoming that
you've overlooked.
Find out how much
utilities and
maintenance cost.
Stay on top of newly
listed houses.
Remain in close
contact with your
REALTORŪ. This is
extremely important if
you're in a strong
seller's market in which
homes that are priced
right go fast. You want
a good agent who will
alert you of new
listings and who will
show you the houses as
soon as they're listed.
Be prepared to look
at the potential of a
house rather than what
you see in front of you.
Set your priorities and
decide what can be
sacrificed. It's more
important that the
layout of the house and
the number of bedrooms
you need fit your needs
and that all major
systems are functional
versus your dislike for
the avocado green carpet
or the lack of
landscaping. Those types
of cosmetic shortcomings
can be easily remedied
once you buy the house.
If you find a
house you like, offer a
competitive bid. Keep in
mind you'll likely be
competing against other
offers - especially if
interest rates stay low
and the spring buying
season is in full bloom.
And don't forget -
once you make an offer,
make it contingent upon
the findings of a
professional home
inspection. If any major
defects surface, you'll
want to have the
leverage to renegotiate
or back out of the deal
completely.
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