Making the Right Decision on Your New Home

The American Dream consists mainly of finding a job you love, having a family that supports one another, and finding a home of your own, one that fits your family needs and desires. Everyone wants to know how to find the perfect home. Well, perfect may be tough, but there are several things you can do to insure you are on the right pathway.

Prior to Shopping

BUDGET: Determine your monthly budget comfort level, one you won't regret in two or three years for spending too much or too little.

QUALIFY: Determine monthly ability by pre-qualifying with a proven lender. Inquire about special loan programs to assist you in your purchase; government programs, adjustable rate mortgages, zero down payment loans, interest only loans, etc.

CASH ON HAND: Determine amount of initial investment capability. How much can you pay now in earnest money? How much cash can you put together prior to closing?

LOCATION: Consider location of home. Is it in a good school district? Is it safe for children? Close to work? What are tax implications? Are surrounding homes and yards fresh and well kept, or tired and needing work?

BUILDER REP: Research reputation of builder/developer. Ask local bankers and current homeowners about the builder. How do they feel about doing business with or buying from this company? Do they back what they say?

PRESENT SITUATION: Examine you present housing situation and determine the two or three primary things you would like to see improved upon in your new home. More cabinets? Larger closets? Higher ceilings? Windows?

SPACE REQUIREMENTS: What size dwelling are you in at the present? Inventory your furniture, appliances, and clothing to determine space needs. Make special note of unusually large pieces that would require extra space; gun case, piano, big screen TV, large hutch, exercise equipment, computer room, etc.

COLORS: Determine which colors would work best with your current furnishings and accessories. Think of the color palettes that make you feel good, compliment your lifestyle.

LAYOUT: What kind of floor plan works best for the way your family lives? Split plan? clustered bedrooms? Formal Dining? Open plan? Great room? Do you have any special accommodations; office space, hobby room, game room, entertainment space, handicap access, hidden safe, etc?

STYLE: Do you like a home with a contemporary feel? Traditional look? Colonial? Very Casual? Very Formal? High-tech? Gen-X? Country? French?

When Shopping

DRIVE BY: Find a location that fits your criteria. Look at surrounding homes and developments. Check routes to work, schools, shopping, etc. What was your first impression upon entering the development and home?

NEEDS ASSESSMENT: Find a builder/developer/agent that will take time to assist you with determining your housing needs and desires. This professional will explore your home desires and find the best for your family, not sell you something they need to unload. Discuss in detail your pre-shopping findings.

TRIGGER DATES: Is there a certain time frame this sale must coincide with? Wedding? New Job? School start? Home sale? Loan approval? Pay increase? Inheritance?

FACTORS: While shopping keep in mind the five Home Factors that must fit for you to be happy; Size. Style, Color, Layout, and Price. What does it matter if the home is a special buy, but the size is too small, the layout does not work for your family, and the colors and style are dated?

FUNCTIONALITY: When you see a home you like, take time to mentally place your furniture and appliances. This exercise will also tell you how functional the plan is to your lifestyle.

BUDGET: Be sure the home you like is in the budget comfort zone you determined and fits into your qualified loan structure. Often a lender can suggest a loan program to address your budgetary needs.

SPECIAL CONSIDERATIONS: Is there anything unique or special about the home you should consider in your value decision? Are any special financial considerations being offered to assist you with point, closing cost, etc?

WARRANTS AND COVENANTS: Inquire about home warranty, standard or extended. Is the home protected by covenants and restrictions? Is there a Homeowner Association to keep the development looking fresh and inviting for years to come? What are the dues? Any undisclosed right-of-ways to be disclosed?

OFFER: Once found, agree upon the price, make an offer in writing with all of your considerations noted. Place an earnest deposit to secure the home or secure the lot and price if in preconstruction.

PAPERWORK: Take the agreement to you lender and apply for mortgage and/or construction loan. Upon approval, close the loan and move into your confident RIGHT DECISION!

DREAM ON! Let your American Dream begin.