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The median home price nationwide was
$177,000 at the end of 2003, up 10.1% from a year earlier.
In 2003, Los Angeles saw the highest increases in real
estate prices, with single-family homes increasing an
average of 25.4%, to reach a median price of $365,300. By
comparison, the median home price in Fort Wayne, IN fell to
$96,800, down 2.3% from 2002. Know Your Rights as a
Homebuyer
Before you start, there are many laws that
protect you from scams, unnecessary expenses, and
discrimination in the process of homebuying. Know your
rights! Find out How Much Mortgage Can You Afford
You can save yourself a lot of
wheel-spinning if you take a minute to figure out how much
mortgage you can afford. Generally, a lender will want your
monthly mortgage payment to total no more than 29% of your
monthly gross income (that's your monthly income before
taxes and other paycheck deductions are taken out.) You also
need to consider current loan interest rates. The lower the
interest rate, the more expensive the home you'll be able to
afford. Follow our tips and use these simple calculators to
see how much you can afford in a mortgage payment. Create
Your "Wishlist"
Make your wish list. Focus on the features
you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or
no garage? Knowing what you're looking for will help you
focus your search. And it will help your real estate broker,
too. Find a Real Estate Broker
You'll want to start searching for a broker
as soon as you decide to buy a home. Talk to several and
find someone you think you'll be comfortable working closely
with. Many of your friends and relatives have probably
bought and sold their homes through brokers. Ask them who
they used and what their experiences were. You can find out
which brokers specialize in the kind of home or the area you
want by looking in the Yellow Pages or your local
newspaper's classified real estate ads. Or drive through
neighborhoods and note the names of brokers on "for sale"
signs. When you talk to prospective brokers, ask questions
about the areas and types of homes in which you're
interested. Do they seem knowledgeable? Most important, is
their personal style a good fit with your own? Shopping
for a Home
Now you really begin house-hunting. Your
real estate broker will be able to find listings for you,
based on your wishlist. But don't stop there! You can do
your own looking, and then ask your broker to show you the
house. Start with the Internet. Pick up real estate flyers
at local grocery stores and convenience stores. Read the
real estate sections of your local newspaper. Drive around
neighborhoods that interest you and write down addresses
where there are "for sale" signs. Go to open houses. Try
everything! Homeowner's Insurance
Lenders require that you have homeowners
insurance, to protect both your interests and theirs. Like
everything else, be sure to shop around for insurance that
fits your needs. for more information
please visit: http://www.hud.gov/ |
