Owning a home has always been the American Dream: a place to hang your hat, raise a family, and make your own.If it’s your dream too, there’s probably a lot on your mind. Maybe you’ve heard about troubles in the housing market over the last year. Does that mean you should stop thinking about becoming a homeowner yourself? No way. In fact, it might help you find a better deal on a house you love. Like always, you’ll want to think through the purchase carefully.
Here are a few things to consider as you make plans:
What's Your Style?
Are you looking for a fixer-upper or new construction? How big a lawn are you willing to mow? Limiting your search at the outset can make your life a lot easier. You can take this even further. Which rooms of the house will you probably spend the most time in? How much storage space will you need? Will a small kitchen cause you big problems? How far away are the highway and stores you shop in? What’s the school district like?
Your Budget
This one seems obvious, but it’s easy to get caught by surprise. It’s not just the mortgage payment you need to take into account, but also interest, taxes, and insurance. And don’t forget maintenance. (When it decides to call it quits, your water heater won’t care that a dentist appointment just wiped out the month’s extra cash.)
Once you decide your budget, take the next step and get pre-approved for your home loan. It will speed up the process when you decide to make an offer on a house. Also, take a look at ways to avoid paying private mortgage insurance. (It’s required if your home loan balance equals more than 80 percent of your home’s value, but there are several ways around this.)
The Housing Market
Home values are always on the move. It’s tempting to buy into a hot market, but your investment could lose value later if the market cools off.
