Home Buyer's Guide

Buying a home is likely the largest debt that you will ever undertake; the average loan amount is 80%-95% of the home's cost. It is therefore essential when deciding to buy a home that you educate yourself in the intricate details of the lending process. In addition, choosing a REALTOR® to assist you with mortgage information, financing options and potential loan sources will simplify the process; it is a source of confidence to have one acting in your best interest.

Know what you can afford

• Calculate monthly mortgage amount, expenses, upkeep, taxes and all other possible costs
• Down Payment: the larger the amount placed down the more likely you will get approved
• Interest Rates: understand the impact of interest rates on the cost of the home (for instance, a $200,000 home at 5% interest is cheaper than a $150,000 home at 7%).

Finding a Lender

• Deal with reputable lenders and seek professional help from agencies such as the Better Business Bureau to identify members of good standing.
• Shop three or more lenders (a REALTOR® may be able to assist you in choosing a lender).
• Know your rights when exploring different loan options (consulting a lawyer may be necessary).
• Visit banks and lending institutions in person - because of the subprime mortgage crisis new rules often demand you visit the banks.

Homebuying Programs

• Educate yourself in recent government programs that can assist you.
• Keep an eye on interest rates - the 30 year fixed rate mortgage has been as low as 4.72% in 2010.
• Consult your local REALTOR® for additional information.
• Review websites such as http://www.mymoney.gov/ or http://www.fdic.gov/.