"Whether the home you are about to buy is newly built or pre-owned... establishing your priorities early in the house hunting process is vital"

Establish family priorities
Begin with a thorough and realistic discussion of family requirements, the "must list." Include every member of the family in the discussion, especially the kids, as their needs and requirements are likely to grow or change more than those of the adults or parents.

Is there reason to believe that you will live in this home for five years or more, retirement? Home purchases are too often based primarily on the number of bedrooms and baths, total square feet or a new, gourmet kitchen, without sufficient thought about the proximity of neighbors, schools, stores or extracurricular activities important to all household members. Geographical convenience for all the family is essential as more families have two fulltime wage earning parents.

If you plan to move to a new community, allow me to help you out on every step of the move.

Define individual priorities
Identify privacy needs of each family member and preview homes accordingly. Some children may enjoy sharing a room when very young but resent having to share as adolescents. Sports, hobbies? Is one member an inveterate gardener, another a prima ballerina or aspiring basketball player? Why settle on a house that requires considerable time, expense and effort to maintain if most of your free time is spent away from the home and/or time and money to do both are not available?

Accommodate individual, adult lifestyles if possible. If one spouse is an early riser and the other a night owl, consciously look for a home that accommodates the difference between adults with minimum compromise.

Identify monetary priorities
Expect some anxiety. It's normal whether you are first-time buyers or veterans of many moves. Most home buyers' anxieties tend to focus on money issues, including the three primary issues of:

How do we qualify for an adequate mortgage? Lenders use qualifying ratios to determine how much they lend you. Loan qualifications are mainly based on employment, monthly income to debt service, and pay back history.

How large will the monthly mortgage payment be? It depends largely on how much down payment is used and your monthly income. You can calculate monthly mortgage payments using a Mortgage Calculator that will give you the Principal and Interest Payment.

How much do we have to have for a down payment? Most conventional lenders require a minimum of 5% down payment, FHA requires 3% and VA loans at this time are zero. Each location has finance programs sponsored by local government agencies that could require almost no down payments based on income qualifications and program guidelines.

Recognize unique priorities
In reality, every home buyer has unique priorities. Unfortunately, many home buyers never take time to recognize and prioritize their unique needs and desires or answer their specific housing related questions. Some thoughts as you begin your search are:

Purchase price and resale value. - Is the price of the home you want to buy, too high relative to other neighboring homes is your opinion? Have the Sales Professional provide you with a Comparative Market Analysis showing recent sales activity in that neighborhood.

Tax Consequences. - Are you downsizing or "down-pricing" to gain equity or reduce monthly expenses? If so, be certain to talk first with your accountant. Persons aged 55 or older receive capital gain benefits on the sale of a primary residence.

New Construction versus a previously owned home: - It's largely a matter of personal preference. Recognize the realities of either preference. A newly built house will probably need landscaping and window treatments, however, the heating system, roof, and appliances will be new, while the resale home requires little or no expense as the landscaping and window treatments, usually, are completed. Keep in mind if you are not handy with tools, you might think twice about buying a "fixer-upper."

Size, number of bedrooms and family activities. - How much time do you want to invest in maintenance? Does your family participate in out of home sports and hobbies? Are you an "empty-nester?" How much house will you be willing to maintain in future years?

Schools, community, investing. - Schools in the community vary between private and public. It's recommended that you visit each school administrator and ask to meet teachers. Take a proactive role in evaluating the quality of education at teach school.

How about community events and activities? The Relocation Coordinator, myself, and the Chamber of Commerce will give you a good picture of what is important to the community.

If you plan to be short-term owners (7 years or less), be sure to consider an ARM (Adjustable Rate Mortgage). There can be monetary benefits in short term financing. It is recommended that you contact a lending institution in the location of your purchase.

If you are buying a home primarily as a financial investment, be sure to do your homework. Ask, What "upward leverage" exists and on what criteria is it based? What are your specific financial goals for this investment, and what period of time have you set for achievement of your financial goals? Ask your tax advisor or accountant for advice before investing.

Happy House Hunting!