House hunting can be much like looking at exotic sports cars. Your eyes say yes, but your wallet says no. When hunting for your next home, it is important that you remain objective during the process.
When viewing homes, there are a number of factors you should take into account. The obvious things include subjects such as space, the neighborhood, quality of schools and so on. You can read up on the long list on the web or in just about any real estate book. There is, however, another thing you need to concentrate on that often gets glossed over by guide books and gurus – your peace of mind.
Before you buy a home, you need to consider how you feel about stress and risk. Many people go out and pick a home they can barely afford. Some pick homes they have to pull all kinds of tricks to get financing for. Obviously, such situations are more than a bit risky if the real estate market flattens out or depresses as we currently are seeing. Regardless, some people can handle the risk and others cannot. The question, of course, is what kind of person are you in this regard?
When hunting for a home, your first step should be getting pre-approved by a lender for a mortgage. Taking this step provides you with a clear and concise idea of what you can afford and the payments you are going to have to make. It also lets you determine how comfortable you are about committing to such payments. Lying awake all night worrying about money is a terrible way to live. Getting pre-approved takes the hassle out of the process.
Once you know the pre-approval loan amount, only view homes that are priced within that range. If you are pre-approved for $350,000, looking at $450,000 homes is going to be a waste of your time and futile. Yes, you might find the perfect home and be able to come up with some creative way of financing the purchase. That being said, you are going to be pressing the envelope on your finances. Is it really going to worth staying up all night because you are stressed about making the payments? It may be, but then again it may not.
Raynor James provides information on your options for mortgage loans .