House Hunting

Once you know how much money you can borrow and have an estimate of your closing costs, you'll know the price range you can afford. You might already have a home in mind. Perhaps you want to settle down in a particular neighborhood, or maybe you just need more space for your growing family.

Even if you know exactly what you're looking for, searching for a home can be overwhelming. It takes time. Being realistic and disciplined while house hunting will help ensure you buy a home that you love and can afford.

The First Step – A Reality Check

It’s fun to look at houses. And this part of the process is very exciting, but don't let your excitement rule the house-hunting process.

• Stick within your budget. Don't look at homes above what you can afford – even if it's just a little more. Buying a home, even a little above your budget, can cause problems down the road if your finances change.

• Don't let your heart rule over your head. You may fall in love with a house, but if it is beyond your means, it is not the right house for you.

• Be flexible. Don’t be disappointed if the houses in your price range differ from your original vision. Buy the home you can afford rather than the home that "has it all."  While you may not be able to afford your dream home now, building equity in a home that you can afford may provide you with the financial ability to buy your dream home in the future.

• Compare what you'd like to have with what you really need.

• Look at the full cost of the house when making your decision – are there homeowner association fees?  Is the house old, requiring a lot of maintenance?  Be sure to factor these in when determining the true cost of the house.

Some good house-hunting tips

• Take pictures inside and outside the home.
• Bring a spouse, family member, or friend.
• Make sure the house fits into your budget.
• Ask about utility and maintenance costs.
• Think of commuting time and costs.
• Consider your monthly budget – can you afford the renovations and maintenance that you'll need to do?
• Don't make a "spur-of-the-moment" decision.

Additional tips to make the house-hunting process easier

• Concentrate on a few neighborhoods. Decide what's most important to you about the neighborhood you want. This can greatly narrow down your search.
• Find a real estate agent. They'll have many more listings than you can find on your own.
• Compare homes. Make sure you know what you would get and what you would miss in each house before you make a decision.