subject: How To Shop For A New Home [print this page] If you are thinking about buying a house, then now's a good time. Housing prices have been getting cheaper and cheaper, and they are pretty stable. That means if you buy a home now, you can get a pretty good deal. Of course, buying a house isn't like going to grocery store to pick up some peanut butter. It's something most people only buy once in their lives, so you need to make sure to take your time, and get something that will keep you happy for your entire life. In this article, you'll learn just how to do that.
The first thing you'll need to do is figure out how much you can afford. The best way to do this would be to get pre-qualified for a home loan at your local bank. They basically look at your gross income, the amount of debt you've already got, and see how much you can borrow and still be OK. Most lenders use a debt to income ratio of about thirty five percent, so you can calculate this on your own if you like.
Simply add up all your debt, including your new mortgage, and divide this by your total gross income. If the amount is less than thirty five percent, then you're in good shape. Calculating backwards from your mortgage payments, you can determine how much of a house you can afford. There are plenty of websites with mortgage calculators on them.
Now you've got an idea of what you can afford, it's time to choose the neighborhood you want to live in. Check out as much statistics you can online. The most important stat is the crime rate, and any information you can get on the local schools. The best neighborhoods are in low crime areas and near good schools.
After you've got a couple of decent neighborhoods picked out, it's time to do some shopping. You can find out a lot online. Find some houses you like that you can afford. Take a look at them. If you're in luck, then people will be having an open house sometime soon. Remember, right now you're just getting a feel for the market, and what's out there.
Once you're at this stage, it's time to get a realtor. Get a professional with lots of experience. Make sure they have plenty of references. That way, you know they know what they're doing. Let them know your price range, and let them know about some houses you've already looked at.
So there you have, your easy method of finding a dream house in a neighborhood where you can enjoy living. Good luck, and happy hunting.
