Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.
Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?
Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.
So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.
Sunday, January 25, 2009
points to check it out
Check the selling prices of comparable homes in your area.
See what you can afford.
. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance,
To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy.Just remember that exemptions and the intricacies of local tax law can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.
What's your home worth?
Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees
See what you can afford.
. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance,
To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy.Just remember that exemptions and the intricacies of local tax law can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.
What's your home worth?
Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees
Making the Selection
Making the Selection
I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It's an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It's not my choice to make.Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer's search parameters.
I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It's an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It's not my choice to make.Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer's search parameters.
View Top Choices a Second Time
View Top Choices a Second Time
After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around. At this point, your agent should call the listing agents to find out more about the sellers' motivation and to double-check that an offer hasn't come in, making sure these homes are still available to purchase.
After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around. At this point, your agent should call the listing agents to find out more about the sellers' motivation and to double-check that an offer hasn't come in, making sure these homes are still available to purchase.
How to rate Inventory
How to Rate Inventory
· Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
· Take copious notes of unusual features, colors and design elements.
· Pay attention to the home's surroundings. What is next door? Do 2-story homes tower over your single story?
· Do you like the location? Is it near a park or a power plant? Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest
· Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
· Take copious notes of unusual features, colors and design elements.
· Pay attention to the home's surroundings. What is next door? Do 2-story homes tower over your single story?
· Do you like the location? Is it near a park or a power plant? Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest
How Many Homes Will You See?
don't expect to see 20 or 30 homes; although it's physically possible to do so, you probably will not remember specific details about any of them.
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