What to Consider when House Hunting

If you're thinking about buying a new home and you feel overwhelmed, you're not alone. Below, we've offered some advice to consider and some pitfalls to avoid on your journey to homeownership. Armed with this knowledge, you can make smart decisions by doing a little research.

Some Things to Think About

• "To thine own self, be true." Be honest with yourself. And your fiscal readiness. Take a look at your finances and credit score to determine whether or not you are ready to buy a home and if you will qualify for a mortgage.
• Try for preapproval. Once you're preapproved for a mortgage, you'll be able to determine the kind of home you can afford to buy. Also, sellers will take your offer more seriously when you are preapproved.
• Consider seeking professional help. A real estate agent and an attorney can be very helpful in the process. An agent can help you search for the house that meets your needs while an attorney can negotiate contracts that will protect your interests.
• Do some of the legwork. Research the neighborhood you want to live in, and better yet, take a stroll around it during the day and in the evening. Does it meet your family's needs? Does it have a good school district and good hospitals? What is the crime rate? What are the tax rates in the area?
• Consider a 30-year mortgage. A thirty-year mortgage means smaller payments. You can always make higher payments if you want to pay off your mortgage faster. If you can afford payments on a 15- or 20-year mortgage, then consider that option as well.

Things to Avoid When You Can

• Try not to go over your budget. You may fall in love with that dream house but you should consider whether or not you will be able to meet the mortgage payments as well as your other monthly expenses.
• If you plan on selling in less than five years, reconsider. Owning a home for such a short time can put you at risk if the real estate market dips when you plan on selling your house. Remember, it takes about five years for the real estate market to recover after a downturn. You're better off waiting at least five years before selling.
• Depleting your savings. When buying a home, there will be unforeseen expenses for repairs, furniture or fees. Try to have an emergency fund for anything that may come up. Save as much as you can for your down payment but be sure to leave yourself with some money for a rainy day.

There are many factors to consider as you decide where you and your family will make your nest. Take all the time you need to weigh your options in order to make the best choice to suit your needs.