Before You Buy

Before You Buy

Before you begin to look for a new home you need to do several things first. Firstly, think of how much home can you afford and what are the monthly payments that you will be able to pay and feel comfortable at the same time. When this is done you need to explore the area where the house you want to buy is located. Find out what are the prices for houses there, monthly payments that people make, lenders available on the market, etc. Remember that all deals are different, so if someone pays for his loan this particular amount of money per month, you can eventually pay more for the same loan.

A good thing to do is to make a list of requirements for a house. Concentrate more on what you need rather than what you want, though. Just decide whether things like three bedrooms, a multi-car garage, second storey, etc. are really necessary for you or can you live without them.

Also you can make a list of things that you don’t want a house to have. Those may be: too many stairs, some areas of town you don’t like, a too-close-to-a-highway location, or a location too far from the downtown, etc.

Don’t be too picky, though. Maybe you can purchase a smaller home to start with. Set up your credit and get your home equity in it, and then you will be able to trade it for a larger one.

© 2010, Jericho Mortgage — Before You Buy