Year 2010 could be the best year in real estate market with so many great investment opportunities that are available for the informed home buyers. As everyone knows by now, one of the biggest reason we  find ourselves  in this market is  due to  buyers who rushed into buying and forgot  to ask  the very  fundamental and basic  question that any home buyer should always ask before start looking for homes: “what can I really afford?”

Ultimately, how buyers  ends up buying a home is going to be a direct result of  their  market knowledge and the more they  understand the fundamental rules, the better position  they will be in negotiating for the best possible outcome.

There are several basic elements that could help you to find out  how much you can afford and what you can spend for  your dream  house:

  • Location- How far will be your commute to work each and every day, how are the schools, the location of the home in the neighborhood, how close to shops and transportation and other important safety and geographic questions that could affect the value?
  • Down payment- How much are you comfortable to put down without breaking the bank or what options are available  to you and if there are programs that you could qualify or  use someone elses money instead your own?
  • Mortgage qualification- You need to ask yourself what type of mortgage payment can  you afford after checking your last year income tax and calculating all  other expenses  which could give you  good ideas on  how big  your mortgage payment could be. A good loan officer can do some calculations and tells you how much money the bank can lend you toward your new home.
  • Closing costs- One of the most important cost in a real estate transaction that  is mostly  overlooked and should be taken to consideration from the beginning is the closing costs. It could be from 3 to 5% of the value of the home and  your  real estate  agent  might be able to  help you  with negotiating some or all  of that depends on the  type  if sale, like short sale, REO…  

Finally, buying a house must be a team work  that includes  your family, your real estate agent,  loan agent and  other parties involved  during your search. You also need to be mentally alert and positive to make sure  not to  lose  your sight on  the original needs and your real budget and objectives. Lastly to  have fun and be excited during the  process since it will be part of your memories after moving in.    

P.S.If you have any questions about buying  a home, or how to avoid  making mistakes that  most buyers make, feel free to contact me at aliloupour@yahoo.com  and let me help you with your questions and concerns.