| You have heard the saying before "home is where | | | | interest rate in addition to the asking price of that |
| the heart is". There isn't anything more true in America. | | | | home. You will see the actual amount you will be |
| A major part of the American dream is owning your | | | | paying for the house when it is all said and done. |
| own home. Our homes are a place to raise our | | | | 3. Don't over pay. |
| children, where we retire, and where we feel safe. | | | | Never buy a home or agree to an asking price without |
| Each and every American has a different vision of | | | | first considering all of the comparisons in the area. |
| where they want to call home. For some it is a city | | | | What are other homes selling for in the area? In |
| condo, others somewhere with a big back yard far | | | | addition, ask yourself "what repairs and renovations will |
| away from others. Whatever the dream for a home | | | | I need to do?" Add these cost onto the asking price. |
| most Americans are unable to achieve this dream | | | | Consider the area. Is it up and coming? Are the |
| without financing. | | | | schools good? Does this home have resale value? For |
| Financing is our pathway to owning a home we may | | | | example, a really beautiful home in a lousy |
| not have the cash for. For example, most people don't | | | | neighborhood is an unwise investment as is a home |
| have 200.000 cash in the bank to purchase their family | | | | that has four bedrooms but only one bathroom. |
| a nice home but if you have a job and decent credit | | | | Consider the layout, the practicality, and age of the |
| financing will provide you shelter within that home and | | | | home. Even if you plan to own your home until you die |
| allow you to pay toward that dream over time. | | | | you never know what is waiting around the corner. |
| Getting the right loan and getting approved for your | | | | You may have to sell even though you don't "plan" to. |
| home loan can be one of the most important steps of | | | | All of these factors do weigh into what a bank or a |
| building your American dream. There are several | | | | lender will finance that home for. |
| factors to keep in mind when considering financing for | | | | 4. Do your research. |
| your future home. | | | | When choosing your financing be sure to do your |
| 1. Stay within your means. | | | | research. Just because one lender tells you he is giving |
| Remember, just because you may be approved for | | | | you a good deal up front does not mean he isn't over |
| 600,000 dollars does not mean you should borrow that | | | | charging you on the back. Ask "what am I being |
| much money. Why? Consider your monthly payments | | | | charged on the back?" Make sure it is standard and |
| with interest rates included on a 600,000 dollar loan. Will | | | | fair. |
| your job cover those payments each month with | | | | Beware deals that seem to good to be true and ask |
| room to breath? What if you get fired or sick or hurt? | | | | as many questions as possible. Get the full story on |
| Will you be able to continue to make your payments | | | | closing costs and how long your loan will take to close. |
| without that job? A wise home buyer will stay far | | | | Make sure your lender offers a "closing on time" |
| within his or her financial means. It can even be wise to | | | | guarantee. When your loan is ready to close ask your |
| save an emergency mortgage payment fund in case | | | | lender about the amortization schedule and how to |
| you lose your job or someone in your family falls ill. | | | | pay more toward the principle. |
| 2. Consider your interest rate. | | | | There is no better security for your future than owning |
| A home is the most solid investment you can make, | | | | your own home and building that homes equity. Make |
| however, it is important you fully understand how much | | | | a wise purchase and choose financing you can afford |
| you will be investing in that house over time. When | | | | from the start. If you follow that rule you will end up |
| adding up what you are willing to pay for a home | | | | with a valuable investment. Remember, the American |
| consider the interest rate you will be paying. If you plan | | | | dream is that much sweeter when you make the right |
| to pay on your home for 30 years calculate the | | | | choices from the start. Happy home hunting! |