When you buy a home, you also buy the neighborhood and the community where the home is located. Its not just a real-estate purchase, its a lifestyle decision! Its best to weigh all three against the day-to-day life that suits you. Is the peace, quiet and distance of rural life more to your taste, or do you prefer closer proximity to people and activities? Are community assets such as museums, theatres, music and libraries important and close by? What access to public transportation do you need? What proximity to shopping do you prefer? If there are children in the household, home location usually affects school choices. Check the current zoning of neighborhood-to-school, and ask about zoning changes over time. In the final decision, talking with people that live in the community and neighborhood may be helpful. They will know the area well, and you may be meeting your future neighbors in the process.

REALTOR® is a registered trademark, as the ® symbol indicates. Only members of the NAR — National Association of Realtors — are allowed to use the trademark as part of their professional title. Members have access to educational resources and certifications around the complex real-estate process. They are also required to adhere to a Code of Ethics. According to NAR, their aim is to be experts in real estate, trends, and their local community, in order to help both buyers and sellers succeed. Roughly half of the people who can sell real estate (by getting a state license) take the additional steps to join NAR and become a REALTOR®. You can find licensed a REALTOR® by searching the NAR directory, or browsing regional resources.

Legal assistance is required in the home-buying process in some US states, but not others. States that currently require a real estate attorney to be involved include: Alabama Connecticut Delaware District of Columbia Florida Georgia Kansas Kentucky Maine Maryland Massachusetts Mississippi New Hampshire New Jersey New York North Dakota Pennsylvania Rhode Island South Carolina Vermont Virginia West Virginia As states pass new legislation, this list may change, so check local laws. Even if a lawyer is not required, the agreements and documentation in a home purchase do involve legal commitments. Engaging a legal representative may be helpful.

Buying a home and renting a home are quite different in the long run. Monthly cost is only part of the picture. Renting does not involve the long-term financial commitments of buying. Renters generally have less responsibility for maintenance. These short-term advantages can cost long-term leverage, though. Renters do not build equity (ownership); where part of each dollar a homeowner pays in a mortgage is coming back to them in equity, rent payments are purely an expense. Home owners also have tax advantages not available to renters. Individual situations aside, home ownership has historically been financially advantageous. The costs — insurance, taxes and upkeep — are generally outweighed by the freedom, security and stability of ownership over time.

Lending institutions consider your full financial situation in calibrating acceptable loan structure and size. Some of the key factors that will come into play: DTI — Debt to Income — compares your pre-tax (gross) income to your expenses and commitments. Non-housing expenses and commitments, especially long-term debts such as car loans, student loans, child support and alimony. Do you have the cash available for down payment and closing? What is the source of the cash? What is your credit rating? Are there any outstanding or concerning issues in your credit history? The Federal Housing Authority sets general guidelines about these ratios, which lenders will consider. These ratios may be adjusted up or down slightly over time. In the past few years, FHA guidance has recommended that monthly mortgage payments not exceed about 1/3 of gross income. Overall expense-ratio recommendations have been between 40% and 43%. All of these factors will be considered and verified in determining qualifying loan amounts.

Wanting to buy a home and being financially ready to buy a home arent quite the same thing. Your financial situation will affect the process, so you are better off assessing your situation objectively yourself. Here are some of the key factors to know: Do you have the financial resources for the up-front costs of down payment and closing? Do your other debts and commitments leave enough cash flow for mortgage payments and the other costs of ownership? Do you have a steady source of income, such as a job? Is your employment history, particularly in the past few years, stable enough for a lender? Have you met previous debts and obligations on schedule? These questions will come up, and your answers will be verified in the loan process. If you are positive about most of these things, then you are probably in a good position to start looking in earnest.

Buying a home is so complex that getting started may be intimidating. Ask yourself some basic questions before getting deeply involved. Are you prepared financially and emotionally to make the long-term investment and commitments involved? Are you clear on your budget, both up-front costs and monthly costs? Have you discussed the things youre looking for in the house — space, rooms, features and the rest — in advance? Have you narrowed down the places that you think will fit your life? You will find it easier to get started after being clear on these key factors; writing them down may even help you stay objective through the many decisions to come.

Buying a home is a complex decision financially and emotionally, with long-term effects on life. Being clear on your housing needs and wants before starting can help make the process easier. As much as possible, your home should fit the life of everyone living there — space, features, neighborhood, and more. Try to agree on your priorities before you have narrowed down to a particular house. Things to consider: Home features. How many bedrooms? Offices? Garage size? What are your must-have and like-to-have criteria for common areas such as kitchen, living room, and media room? Home size. Square footage is a big factor in pricing; how does your desired size compare to your current situation? Lot and yard. The outdoor space around the house may be a big or small factor for you. Other amenities such as distance to work and schools, neighborhood character, parks and common facilities, as well as in-house amenities — everything from the floors to the roof — are also part of your decision process. The experts advise knowing your minimum requirements — those must-haves — and your wish list of nice-to-have features.

Page 4 of the Loan Disclosure is NOT just standardized same-for-every-loan boilerplate. Review Page 4 on your disclosure carefully, including these terms: Partial Payments — what policies does the lender provide? Late Payments — what penalties apply, after what period of time? Negative Amortization — are payments that do not fully cover the interest due allowed? Do they result in increased loan principal? Early Repayment, or "Demand". Can the lender require earlier repayment than originally scheduled? Assumable/Assumption: If you sell or transfer the property, can the loan also be transferred? Escrow Account details — study these to be clear on which costs are covered, and which are not.

Cash To Close — the final money required in-hand at loan consummation. Borrower-to-Seller comparison, line-by-line (if there is a seller in this transaction.) If there is no Seller, a Payoffs and Payments table may be provided instead. This comparison, and the notes, should assist in understanding how the final transaction compares to the original Loan Estimate.