| Your idea of a dream house may differ radically from | | | | things you need to consider in order to come up with a |
| that of your neighbor or your best friend. So many | | | | realistic number. |
| things can vary-architectural style, the materials used, | | | | There are several interest calculators available on the |
| the floor plan, the size and number and kind of | | | | internet at no charge. They will help you calculate |
| room-the list is virtually endless. But there are a few | | | | payments on the price range of homes you think you |
| things that apply to everybody, across the board. They | | | | might be able to afford. Just keep in mind that these |
| are the rules that each and every person who is | | | | calculators, while helpful, are only very generalized |
| considering buying a home needs to know and follow-if | | | | estimates. They may not include things like taxes, etc. |
| you want to be a wise consumer and a happy | | | | Include other monthly financial responsibilities you |
| homeowner. | | | | have-such as car payments, credit card bills, daycare, |
| Golden Rule Number One: The three most important | | | | any outstanding loans, and your credit history. A lender |
| things in real estate are location, location, and location. | | | | will take all this into consideration before approving you |
| That's because location equals value. It's up to | | | | for a mortgage loan. |
| homebuyers, of course, to determine what "value" | | | | Don't forget the importance of a down payment. Most |
| means to them-and specifically what they value most. | | | | (but not all) home purchases require at least a five |
| For instance, some homebuyers want to keep their | | | | percent down payment. |
| commute short and live close to where they work. | | | | If you would like to purchase a lot and have a home |
| Others with school-age children might prefer areas | | | | built, remember that most builders require that all extras |
| with high-quality schools and a family-friendly | | | | and upgrades will be paid for up front. |
| atmosphere. While those who are nearing retirement | | | | Don't forget about closing costs. You can expect to |
| might put a priority on the proximity of medical facilities | | | | spend several thousand dollars before all the papers |
| and communities or neighborhoods with services, | | | | are signed and you have the keys to your new home |
| facilities, and amenities that cater to seniors. Safety | | | | in your hand. You should also know that some financial |
| and security are frequently major issues for many | | | | lenders might want you to have several months worth |
| people. Keep in mind that it's relatively easy to find out | | | | of mortgage payments set aside before allowing you |
| about local and area crime statistics, as well as the | | | | to close on the purchase. |
| proximity of police and fire protection to neighborhoods | | | | If you are buying a newly-constructed home, don't |
| you are considering. | | | | underestimate what your annual tax bill might be. |
| Location also strongly impacts your financial | | | | Remember, most newly-built homes are usually not |
| investment in a home. So a smart thing to do is to | | | | taxed at their full value the first year. That's because |
| begin your search for a home in areas that are | | | | taxes are assessed on only the "unimproved" property |
| prosperous and/or growing. Good signs of this are | | | | prior to construction. Many new homeowners are |
| property taxes and desirable school districts-they both | | | | shocked and financially stressed when they get the |
| contribute to property values. If you want to learn | | | | following year's tax bill, which then taxes the land and |
| more about a school or a school district's ranking, go to | | | | the "improvements" (the new house). |
| the Texas Education Agency's website: [ | | | | Golden Rule Number Three: You must be ready to |
| Finally, location will make a difference whether you | | | | commit to the expense and time necessary to |
| personally feel comfortable and happy in a | | | | maintain a home-inside and out. In addition to that |
| neighborhood or not. In order to get a feel for what it | | | | monthly mortgage and taxes, you have a commitment |
| might be like to live in an area you are considering, | | | | to your neighborhood to maintain your lawn on a |
| drive around in it at different times of the day and night, | | | | weekly basis, in addition to landscaping that is in a style |
| during both the week and weekends. See what traffic | | | | similar to your neighbors. You must also protect your |
| is like at peak traffic hours. Observe if homes and | | | | home (think roofing, painting, and so forth) against the |
| landscapes are nicely maintained. Think about things | | | | occasionally harsh South Texas weather and climate. |
| like the convenience of supermarkets and shopping. | | | | Then there's the inside of your home. Beyond monthly |
| And don't be afraid to get out, walk around, and talk to | | | | bills, there will sometimes be repair and replacement |
| a few residents. Ask them what they like and dislike | | | | costs associated with plumbing, heating, air conditioning, |
| about the area. By the time you've done your | | | | and major appliances. |
| homework, you'll have key insights and an overview | | | | If you still think you want to be a homeowner, great! |
| that will truly be useful in making a very important | | | | Start following The Golden Rules, and you could |
| home-buying decision. | | | | ultimately rule over your own castle. Which may not be |
| Golden Rule Number Two: Determine how much of a | | | | worth its weight in gold-but certainly can be a priceless, |
| financial investment you can afford. Here's a list of | | | | rewarding experience. |