1.Why do I want to buy a home?

American dream of ownership, personal pride
Wealth accumulation through equity in the house
Great potential for house to increase in value over a period of time
Tax benefits such as deductions for mortgage interest if principal home
Never have to worry about rent increases based on the assumption that
you have a fixed monthly rate mortgage.

Added monthly expenses (i.e. insurance, property taxes, maintenance & upkeep,
more utility bills)
Relatively more difficult to move and be mobile
Need more time to spare in order to take care of the home (i.e. yard work,
maintenance upkeep)

2. Can I afford a home?

Review your monthly budget. How much money is coming in and how much is going
Take into consideration all the housing-related expenses for the purchase of the
How much can I afford to pay considering my income, budget and housing expenses?
How stable is my job?
Will my present income and project pay increases in the future able to sustain all my
housing expenses and other debts?

3. Picture your dream home

What is most important to you in a home?

Consider a list of “must have” and what things you would be willing to do without.

Do you desire a new construction single family home in a subdivision, older home or
fixer upper, a condominium, a townhouse?

What distinctive features do you want in a home? (i.e. amenities, more rooms, more
back yard space, etc.)

4. Do some background research about the home and community

Get some background information about the community you are interested in and the
home you’re interested.

Have you considered the schools and neighborhoods in the vicinity?

Consider the distance of your new home to work. Are you willing to commute or not?

5. Do I need the services of real estate professionals?

Do I need to work with real estate professionals? Without the necessary skills and
knowledge, it may be worth all the troubles to use the services of a real estate

Am I prepared to deal with the complexity and hassle of a major real estate
transaction which I may be unfamiliar with and with limited knowledge?
(i.e. deal with the title company, home inspection, buyer, etc.)

6. How do I get prequalified or preapproved?

There’s a distinct difference between being pre-qualified or pre-approved.

Pre-qualified in a nutshell is informal process based on what the lender may lend you
without going through the nuts and bolts of the mortgage underwriting process. (a
preliminary assessment of the applicant with some basic questions)

Pre-approved in a nutshell is formal process based on the lender having completed
it’s mortgage underwriting process of the applicant and a firm amount or commitment
the lender would be willing to lend you. ( a complete assessment of the applicant after
you have provided all the necessary information to the lender or mortgage broker - i.e.
formal mortgage application, credit check, credit history, due diligence review)

7.  Negotiate the deal

Based on supply and demand market economics, be prepared to set the maximum
price you’re willing to pay

Consider the sales comparables of similar properties in the area.

Consider what concessions you’re willing to make or take (i.e. credit towards closing,
home warranty)

8.  Do a final walk-thru inspection before closing

Ensure all the agreed upon repairs were made and there are no new significant
problems that could affect the purchase of the property.

                                                         © 2006 Gold Fortune Realty
We are totally focused on
our client's needs, and we
work hard to realize their
dreams as if they were
our own.