Kate Ford Mortgage Translator

Are you ready for buying a house? This article focuses on prioritizing your housing needs before you begin shopping for a home.

There are a lot of reasons to buy a home. A home is an asset that over time increases in value. There are always periods when home values diminish but over the long term, there is no single better investment.

A home is also a place to raise your family and adds stability because it encourages families to plan for the future.

Owning a home is a way of investing in your community. It helps improve neighborhoods and provides local economic strength.

Because homeownership is such a positive influence on families and communities, the federal government is active in creating programs through FHA home loans and using tax incentives to encourage buying a home.

Often the most difficult part of buying a home is knowing where to begin, especially for first time home buyers.

Now it is time to focus on deciding your housing needs before you begin your search.

It is far more efficient to determine your personal requirements before you begin your search for a home. Start by thinking about the way you live. Are you a single person? Are you married? Do you have children? Perhaps you have a parent or grandparent living with you. Maybe you work from home and need office space. If you have pets, you should also take their needs into consideration. Sit down and write out what you think you need regarding space in a home.

Next create an additional list of features you would prefer but are not essential. Here is where you can dream a little. Include benefits like a relaxing pool, covered patio, overhanging deck, or a scenic view.

After listing what you need and adding additional features that you would like but are not essential, start to consider your priorities.

Priorities may include lot size and location. Do you want a big yard that may require more upkeep or a smaller yard with less maintenance? Do you like corner lots in a neighborhood or would you prefer to be located in the middle of the block or end of a cul-de-sac? Write down your thoughts about how large you prefer your lot and where you like it to be located.

An obvious priority is house size. How many bedrooms are important? What other additional rooms do you need? How many bathrooms do you require? What do you want in a kitchen? Think about room count, room sizes and features you want in a home. Write them down.

Other priorities will include the building style. Everyone feels better driving up to a house that they like aesthetically. Think about homes you have seen and write down the styles that you like. You can even take pictures of homes that draw your attention.

For most people, neighborhood is an important part of buying a house. If you have children, it is going to be important where the schools are located. Will your kids be able to walk to school or are they located too far away?

You may also want to think about where you want your home to be in proximity to your job and public transportation. Do you need to be close to the subway or train station? Is it important to be near bus stops? Do you want to commute, how far and how long?

Regarding all these items, establish your minimum requirements. Then build a wish list too. Both checklists are important.

And remember what I say. It is your house and your mortgage. No one is going to care about it more than you.

Above all, decide you are going to have fun while buying a home.

My Regional Manager would have rolled up into a ball if he heard my title: Buying A House - Your Constitutional Right in America. I'm not kidding!

Well, I wasn't successful because I listened to him! He may have believed buying a house was not a basic American right but I never bought into that limiting theory. I have always subscribed to the belief that EVERYONE deserves to own a home. Now I'm not speaking entitlement. I mean you have every right, and the responsibility, to go after your piece of the American Dream.

Just add desire.

Owning a home is the dream part of the American Dream and fortunately that dream is attainable for most families. Like most dreams, desire is important and is the first ingredient. If you have the desire to own a home, you have already satisfied the most important step to home ownership.

Because your home is a financial asset, the desire for equity appreciation over time is certainly part of the dream. Although owning a home brings the hope of equity appreciation, it also brings many other benefits to a home owner such as financial stability, a feeling of pride, and the sense of community. These benefits are basic to our American heritage and are ingrained in our society. The right to own a home is one of the important features of our constitution and is what makes living in the United States so great.

As much as we may like to avoid questions regarding our personal finances, buying a home is mostly determined by your current and expected prospects of financial ability and stability. In order to determine if you are prepared to purchase a house, let's answer some basic questions.

#1 The first question regards income. Income needs to be steady and reliable. A steady income refers to your income's consistency. The more consistent your income the better. The reliability of your income mostly refers to its predictability. What is the likelihood of your income continuing into the future?

#2 Of course, income usually comes from employment. So the second question to determining if you are prepared to buy a home is related to job history. If you have worked at the same job or related jobs continuously for two to three years, the employment question will likely not be an issue.

Tip: When a lender is looking at a loan application they are going to examine each of these aspects of your financial life. Popular misconceptions are that lenders are looking for reasons to deny you but in truth, lending is how these mortgage institutions make money. So don't feel intruded upon. Instead seek the guidance of a reputable mortgage lender to help guide you through this process. Use this Mortgage Information Planner to prepare before you contact a mortgage lender.

#3 How you handle debt is extremely important to your financial health and is the third question to address if you are preparing to buy a home. Making payments on time is probably the single most important factor that lenders look for in a prospective home buyer. So if you are sloppy about making payments on or before their due date, I recommend you correct that right now. Late payments are not going to help your credit profile and are bad habits that can be easily corrected.

#4 In addition to timely payments, the fourth issue for a new home buyer has to do with total debt. Bluntly expressed, are you over your head in credit card debt? Some people have large car payments plus high balances on credit cards. Other debts may include boat and recreation vehicles, installment payments for jewelry, furniture, and other items. Credit is easy to get but when qualifying to buy a house the volume of debt can obstruct your ability to get the house you dream about.

Tip: Over the past few years there have been a plethora of mortgage products that allow people to buy homes without down payments. But due to the recent mortgage crisis, these products are not going to be as available.

#5 In addition to examining total debt, are you saving for a down payment. For those who have saved for the cost of buying a home including a down payment, they are a step ahead. It is never too late to begin a gradual savings plan toward a buying a house.

#6 The last issue is one some people don't think of but is also important to your overall financial life. Can you afford a mortgage plus the additional cost related to owning a home? Some of the expenses that occur are home owners insurance, property taxes, yard maintenance, physical upkeep, and various maintenance systems such as electrical, plumbing, heating and air conditioning.

Now before you disqualify yourself from home ownership, I have one more recommendation. Now is the best time to contact a home loan lender and begin the application process. The most important thing when buying a house is to know your options. A reputable and experienced mortgage lender can help you zero in on the most important issues that you may need to address. For the easy path to low mortgage payments use this convenient list of questions when you contact your lender.