For the New Home Buyer

A home is the biggest single purchase that most consumers ever make. Some people will live their whole lives in that home, while others may move periodically due to work transfers. Before you go out looking at real estate, consider the following:

• What size will be adequate for our present, or future family needs?
   
• Do we have location needs? (e.g. proximity to schools)
   
• Is the family budget going to be able to deal with the term of a mortgage?
   
• Can we afford to buy a “fixer upper”?
   
• Will we have any other large ticket purchases (such as a car) in the near future?

You are the only one who truly knows all about your family and financial circumstances, so it's up to you to do the groundwork before purchasing. Sit down and consider the family income, and what you can afford in monthly payments. Commitment to a budget is important to your financial future. Make initial contacts with lending institutions by phone, and inquire about their rates and terms. Get a report on your credit rating, so that you know what the lender is going to be looking at when you apply to them. If you are unsure about any aspect of your purchase, whether it is the property itself, or the actual purchase, consult the appropriate experts in real estate, banking or law.