Homeward Bound
It's the beginning of an extraordinary journey: buying your own home. You've listened to the usual advice, and you've heard some unusual advice along the way as well. However, you may still feel lost in this process, like you are crossing the Sierra mountains with no GPS. If so, be not afraid, for you have come to the right place. Heed these words of wisdom:
- Aim for a home you can really afford. The standard metric is to buy a home priced at roughly two and a half times your annual salary.
- Check up on your credit history. Get copies of your credit report. Fix any problems you may find.
- Consult a professional. In the internet age, finding a home on your own is easier than ever. Nevertheless, most new buyers will benefit with an agent who knows your interests, and can help in the bidding process.
- Get pre-approval for a loan. This will demonstrate your financial strength to brokers when bidding on a home.
Choose carefully between points and rate. If you plan on staying in your house a long time, i.e. five years or more, it may be a better deal to pay additional points in exchange for a lower interest rate.
Forge ahead and be fearless on your quest for a new home. For, in the words of the first man to summit Mount Everest, Sir Edmund Hillary, "It is not the mountain we conquer but ourselves."