If you are ready to purchase a new home there may never be a better time than now. Home prices are at record lows, but a home will still likely be the largest investment you will ever make. No matter how great a deal it seems, you should still proceed with caution and don’t rush in to something you are not ready for. A home purchase could affect you for 30 years or more depending on the type of mortgage you choose.

Before you start your search for a new home, you should ask yourself (and be honest) how much you can afford to put toward the purchase of your new home.

There are many factors that go into determining what you can afford to pay for you new home. The main factors are income, debt, down payment, and the term of the loan set by the lender.

Once you determine what you can realistically afford, you’ll need to obtain a copy of your credit report and begin the process of finding a lender for a home mortgage. Don’t just start filling out applications everywhere you go, rather shop for a while. Armed with a copy of your credit report, begin talking to lenders about mortgage terms, interest rates, etc. until you find a lender that you find a good deal with.

Don’t try to go at this on your own. There are professionals in the real estate field like real estate agents and lenders who have acquired years of experience and knowledge about real estate transactions. There is no way possible for you to acquire within one home purchase the knowledge needed to make a transaction run smoothly and without mistakes.

This doesn’t mean that you need to let them tell you everything. You still need to continue to educate yourself as much as possible so that you fully understand what is going on.

Remember that these professionals earn their money when you close the deal. It is their job to help you get through the details and into the home you want to purchase.

Hubert Miles is the founder of Waterfront Houses USA, an internet marketing service that provides Oceanfront House For Sale and Ocean House For Sale available in the US and Canada.

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