I always suggest using a Realtor. They will have the most market information available, and the buyer in most cases doesn’t pay the Realtor’s fee, the seller does. So it costs you nothing to use a professional, great deal for the buyer huh? You may be able to get a better deal by searching for sale by owners, but unless you know the legal aspects of buying a house, why leave yourself exposed like that? Also, the vast majority of houses are NOT FSBO’s, so you may also be limited as to choice.

Interview several Realtors. I like to go to Realtor.com, do a search in my area and simply email some of the Realtors there. You will be surprised at how many WON’T email you back. If you can’t get in touch with a Realtor, why would you want to work with them? Set up appointments to meet at least three of them. Learn what you are looking for first, (explained later) so you can tell them at this meeting. See if the Realtors are really people you want to work with, personality wise, etc. If all of them seem good, then narrow it down by who will work for you.

Again, tell them what you are looking for, give them your email and see who is the first person to email you back, who sends you the most relavant information, etc. I have had Realtor’s that said they really want to help me, but then sent me listings for 50% more than I told them I wanted to spend! If they don’t understand your needs, use one of the others. Then, pick the agent that is easy to contact, gives you the most service, and seems eager to help and get along with you to work with.

When deciding on what you want in a home, you first have to decide how much you can spend a month so you can find out what price house you can afford. Don’t let the “experts” fool you here, that is why there are so many foreclosures today. Mortgage companies will often approve you for up to 40 % of your income to be used as a home payment. This is much too high, unless you like foreclosure that is.

I like to keep it simple. One weeks pay should pay for one months house payment, the true cost. If you make $4000 a month, that is a $930 a month payment. What you talking about Willis, why not $1000? Do the calculation and you will see there are 4.3 weeks in a month, trust me. Again, something most “experts” never tell you.

To find the true cost of owership, you will have to do some estimating. Upkeep will be between 2 and 5% of your homes value a year. Add utilities, taxes, insurance, home owners fees, and any assesments. You might be surprised at how little is left after all these fees. It is going to also depend on the house, so you will have to do some estimating only at this point just to see approximately how much you will have left each month for the mortgage. Get down to specifics when you find the house you want.

Now, go to a mortgage company, a big one that isn’t going out of business today, and shop for a loan. If you have a bank you deal with, they might be a good source, although banks often cost more. I simply like to call around in the phone book and ask about rates, closing costs, fees, etc. Also, you can check online, but they often only show rates. Calling is quick and easy and you will be surprised how much information they will give you.

Again, here is where you want to do your due diligence and find someone that will work with you. Ask them to email you this information (to your junk email account, read my article on this), and see who responds. Email them back a couple times with more clarifying questions and again, see who is really willing to work. Pick the one with the lowest rates, lowest cost, and that is willing to work with you.

Go get preAPPROVED for the loan. Prequalification means nothing. You want a 30 year, fixed rate mortgage, with no prepayment penalty. This will give you the most flexibility, your rate won’t jump up like some adjustable rate mortgage, and if you want to pay it off in 15 years or less, you can.

Now that you have found the loan and the Realtor, it is time to get down to business. Let your Realtor know how much you can spend (NOT the loan approval amount remember, we are trying to stay out of bankruptcy). The Realtor will try to tell you to look at houses above what you want to spend because they will tell you to negotiate down. You can look at them, but be sure to tell him or her to look for cheaper houses as well. You don’t HAVE to borrow all you can either.

Look at several houses. Even if you find the perfect house the first day you look, look at least at 5 others, just so you can get perspective. You might be surprised that the perfect house is actually not as nice as the next one you look at that is cheaper. I have seen this many times. Once you find the “perfect” house, have your Realtor draw up the contract and let your lawyer look it over before you sign it. Again, paying a lawyer a couple hundred dollars to make sure you aren’t signing your life away is cheap insurance.

Be sure your Realtor has an inspection contingency put into your contract. Get a home inspector to come out and check the home and if it doesn’t pass, the inspection contingency will make sure things get fixed or you can walk away. I have a home inspector do my inspections even though I could do them myself. Why not let him have the liability for the few hundred bucks I pay him? If I miss something, it is ALL on me.

If the house passes inspection and all the dots and I’s are crossed, you already have your preapproval, so you know you are going to be able to close. Just have YOUR REALTOR stay in touch with your mortgage company to make sure nothing changes. Make sure you rate is locked in, and if they come back and tell you they want to up your rate or charge you more closing costs (this has happened to me AT closing), walk away and find a different mortgage company if they won’t fix it (mine did). It is the principle. Isn’t it better to waste the few hundred dollars you already paid for appraisal and the like and not let the company take advantage of you? Most mortgage companies are honest, just use your resources like the Better Business Bureau and friends as well when you are picking who to work with.

After you close, figure out how you are going to move all your junk. Consider selling or giving away your used things, as this is a great time for Spring cleaning. Don’t get too carried away with new purchases though, as you will be amazed at how much you spend on new blinds, air fresheners, cleaning supplies and all those little things to get your new house in order. Take it slow, sink in to your new surroundings, and enjoy life a while before buying that new walk in humidor. See how you manage the payments for a few months, and save a little for repairs as they will happen. Enjoy your new house. By using these tips it shouldn’t become a burden like so many people have these days.