Every day, people across the nation are making the leap from renting to owning a home. Purchasing a home is a huge step in a person's life, and the decision should be well thought out and informed.  The vision of owning a home is tantalizing to many people, but if a buyer is not fully prepared for everything that comes along with home ownership the dream can become a nightmare.

Things to Keep in Mind

Buying a house is a long-term decision, and there are many things to consider when preparing to purchase a home. 

Financial Considerations

Some people look at the rent that they pay, and think that a mortgage will be exactly like paying rent.  That is not the case.  First of all, a mortgage has interest factored in.  Even with a low interest rate, a large percentage of what you pay on your mortgage each month is likely to go to interest. 

Escrow funds are also taken off the amount you pay on your mortgage each month.  This money goes to pay for home insurance and real estate taxes.  Between escrow and interest, you pay very little towards principal monthly.

Depending on where you purchase a house, you may be required to pay annual fees to a homeowner's association.  Keep in mind that you will be responsible for your own repairs when you own a home.  You will also likely have to bring money to the table when completing the sale of the house. 

Family Considerations

Even if you don't currently have children, you might have children (or grandchildren) in the house in the future. You are likely to be in your home for a long period of time, so make sure you are prepared for this event to occur.  Check the sex offender registry to see if anyone is registered near the home you are looking to buy.  Also, if you have children, or are considering having children, get information on the school district the home is in. 

Getting Started

It is a great idea to enlist the help of a realtor when you are searching for a house.  A realtor is extremely knowledgeable and will be with you every step of the way.  Realtors communicate with each other and can often find potential homes that you might miss.  Finding a great realtor that you trust can be done online or through word of mouth.  Asking friends and family for recommendations is a great idea. 

Go into your first meeting with your realtor having an idea of what you want.  If you tell your realtor you are looking for a three bedroom, two bathroom house with a two car attached garage, a fenced in backyard, and first floor laundry, they have a good idea of where to start.  You are likely to get results faster if your realtor knows what to look for.

Your realtor will also need some financial information from you.  Sometimes this part is done through a third party.  This information will be used to determine the amount of money you can be loaned.  If it is determined that you can afford up to a $175,000 loan, you will need to look for homes less expensive than $175,000.  Experts recommend that homeowner's put 20% of the total amount down, but it is not required.  Many experts also recommend that your mortgage payment should not be more than 25-30% of your gross monthly income.  This ensures that you have enough money to live on after paying your mortgage payment.

Where to Start Searching

Twenty years ago, people relied heavily on newspapers to find home listings.  Newspapers and real estate magazines are still around as a way to find a home, but the internet has introduced other ways to search, also.  There are numerous real estate websites in existence.  You can search and save listings online that interest you, and have them available at your fingertips.  You can also send these results to your realtor, who will in turn set up an appointment to allow you to see the house.  Your realtor can be a huge asset to your search.  They communicate with other realtors, and they do not limit themselves to homes for sale within their specific company.  When it is time to see a house, they will accompany you to the home and answer any questions you have.

Found It!

Congratulations!  You have found a house you want to purchase!  Buying a home is not like going to the store and buying a new shirt.  The price is not set in stone, and can often be negotiated.  Your realtor from a company like Realty Executives will be a huge help in negotiations. You will need to have the home inspected and appraised.  Your loan will have to be approved.  A title company will have to also be used in order to make sure the title for the house is valid.  There is a lot of paperwork that must be done.  The final step in your purchase is called "closing."  At closing you will sign documents giving you ownership and will pay closing costs.  After closing, the house is all yours.  Welcome to home ownership!