Another thing the borrower should research is future home value potential. The neighborhood might be quite and crimeless. However, properties in some areas actually depreciate over the time. Ask your agent if he could provide the history of the property appreciate in the area you looking to purchase your dream home.

When you have finally decided on a new home it is time to order a home inspection and appraisal. A home inspection will reveal any material defects in your new home and should give you a good idea as to which systems need attention or repair. The appraisal will usually be ordered by your loan officer and will determine the Fair Market Value of your home. The appraisal will analyze the chain of ownership and recent sale history as well as provide comparable homes in your area of similar size, age, and build style. Both the appraisal and home inspection offer 3rd party opinions and should be carefully studied prior to taking ownership of your new home.

Many states not only rank schools based on a number of factors, but make the reports available online. Scanning many schools report cards online can save you a lot of time compared with calling each school to get a copy of the report.

Mistakes to avoid when buying a home - When shopping for your new home there are many things that you can do wrong. Some of these mistakes can cost you the home you wanted to buy your money or both. Some of the more common mistakes are but not limited to the following.


Not getting your interest rate lock in writing. When your mortgage broker locks your interest rate he/she should supply you with a letter that states your interest rate and how long it is locked for. Do not take the word of your mortgage broker that your rate has been locked. Always ask for a rate lock letter

Before even looking at homes, make a list of things that you MUST have in your home, be it size, rooms, location, amenities, etc. Then, use that checklist when looking at homes. Be patient and don't make compromises you may regret later.

Many people shop for a home prior to shopping for a mortgage. Often times they will fall in love with a house they ultimatly can't afford. By speaking to a mortgage professional first you will get a concise window of what price you can realistically afford. Getting pre-approved is the best way to let Realtors and sellers know you are serious about your purchase. Generally, they will then take your offers much more seriously.

You should always get a second opinion on the house condition from a licensed and certified property inspector who can tell you what is wrong with the house or what items will need to be repaired so you can negotiate for repair costs from the sellers.

If you find a home you like, make sure you take a look at it more than once and at different times if possible. Try and get a feel for the day to day things you don't always think about. There might not be any traffic on a Sunday afternoon, but morning rush traffic might be horrible, or the bus stop might not be in a convenient location.

When buying a home make sure that you do not buy too expensive of a home. Even though you may qualify for a large mortgage this does not mean you need to buy a home at the maximum amount you are approved for. Along with a bigger home, come larger utiltiy bills, larger maintenance bills and more time required for the upkeep of your home and yard. Many people like to buy homes above their means and then end up needing to downsize later.

Rushing into a home can be a big problem. Get prequalified and don't shoot for the max, take your time and look at many houses, as you will probably be in it for a long time to come!