LOOKING FOR A HOME

What's Right For You?

To start, consider your lifestyle. If you love to cook, you'll want a well-equipped kitchen. If you're into gardening, you'll want a yard. If you're planning your office at home, you may want a room for a separate library or work space. If you have several cars, you may require a larger garage. Use this list as your search guide.

Next, think about what you might need in the future. As you consider your housing needs, it's important to consider how long you may live in your home. If you're newly married, you might not be concerned with a school district right now, but you could be in a few years. If you have aging parents, you may want to look at homes that offer living arrangements for them as well as you.

It's important to think about your new home's location just as carefully as you do about a house's features. Location is a huge part of any move. In addition to considering the distance to work, you need to evaluate the availability of shopping, police and fire protection, medical facilities, school and day-care, traffic and parking, trash and garbage collection, even recreational facilities.

Another important decision is the type of home you want. Do you want a condominium or a co-op? A town house or a detached single-family home? Do you want brick, stone, stucco, wood, vinyl siding, or something else? Do you prefer a new home or an older one?

Single family homes have good appreciation, offer the opportunity for gardens, provide more privacy, and are generally quieter. But, they're usually more expensive than Condos and Townhomes and require more maintenance. Alternatively, Condos, Townhomes, and Cooperatives are typically less expensive than comparable single-family homes and typically require no yard or exterior maintenance. However, they do offer less privacy, tend to be noisier, and have common walls, floors and/or ceilings, not to mention additional expenses, like association fees.

Be sure to talk to your real estate professional about where you want to live and what's most important to you. While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire home buying process: he or she is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction. CENTURY 21 V.J.F. professionals have the expertise to help their clients narrow their choices by sharing market trends and local information.

What can you afford?

Now that you know what you're looking for, the next step is figuring out what type of home you can afford. A review of your income, savings, monthly expenses, and debt will be necessary.

Early on in the process, you'll want to get pre-qualified for a mortgage loan,which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase the home.

Knowing what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. It pays to check with several lenders before you start searching for a home.

The price you can afford to pay for a home will depend on several factors, such as:

• gross income
• the funds you have available for the down payment, closing costs and cash reserves required by the lender
• your debt
• your credit history
• the type of mortgage you select
• current interest rates

Another figure lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment, property tax payments and insurance premiums on your new home loan (also known as PITI). Each buyer is unique and a mortgage professional can help you find out just what you can afford. Your income and your debts will typically play the biggest roles in determining your price range. It's simple to make an estimate, just run the numbers for yourself using our Affordability Calculator.

Know The Neighborhood

When you buy a home, you're investing in a community. You'll spend a significant amount of time and money supporting the schools, community organizations and commercial centers in the surrounding areas. Before you make the final decision, take a good look at the location and make sure it fits your needs.

• Evaluate the properties proximity to other important locations in your life. How long will your commute time be? Is there a hospital or doctor's office nearby? What about schools, childcare, shopping, family and friends?
• Consider all of your transportations options. A new home could lend itself to public transportation options or car-pooling. Depending on the type of community, you may be able to find alternative methods of transportation. Take the time to drive from the new home to your commuting destinations to understand the impact it will have on your lifestyle.
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• Visit and understand the school district you'll be moving in to. Even if you don't have children in the school system now, you may some day. The district reputation could positively or negatively impact the selling price of your future home as well.
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• Make sure you feel comfortable in the area. Drive around the neighborhood at different times of the day and night on multiple days of the week to observe activity and noise levels. Discovering noisy road conditions from the nearby highway can eliminate unneeded stress from a hasty decision.

CENTURY 21 ®real estate professionals are experts in the areas they serve. Ask your agent for a list of schools, shopping centers, parks or other important amenities. Buying a new home is about more than the structure and property. It's about your new lifestyle as well.
Visit our Community Pages to learn about the area.

Already Have a Home?

Buying a new home and selling an existing home at the same time has it's own set of challenges. But with planning, you can ensure everything goes smoothly.

Before putting your house on the market or committing to buying a new one, take a look at the prices of houses in the areas where you'll be both selling and buying. You'll need a realistic idea of sales prices for similar houses so you can assess both your buying and selling position.

What if you're unable to perfectly time the sale of one house with the purchase of another? You may own no houses for a time, in which case you'll need money in the bank and a temporary place to live. Or, you may own two houses at once. That's why it's important to have a back-up plan. Here are some options to consider:

• Research short-term rental and storage options (family, friends, storage facilities, containers).
• Bridge financing is a short-term loan for the down payment on a new home backed by the equity in your old house.

Buying a Second Home

Buying a second home isn't that different from buying a first home. Affording it usually depends on your ability to qualify for a mortgage on the second home. Benefits include a getaway for the family on vacations or holidays, a future retirement home, renters making your mortgage payments for you, or an investment.

Many people see buying a second home as an investment opportunity. You'll need to identify sources for your down payment, since you're not selling your current house and using the proceeds, and you'll need to expect a larger monthly obligation for housing expenses.

Keep in mind that if you declare it as a rental, your mortgage might be slightly higher. Work with your lender to create a customized loan program with the best combination of rate, points, and closing costs for your needs.

Shopping For a Home

Selecting a buyer's agent to help you find your dream home is an important first step. He or she can represent the buyer's interest in a real estate transaction. Before making a decision, however, have a REALTOR® explain the pros and cons of using a buyer's agent versus a sales or dual agent.

When you're ready to visit houses, ask your CENTURY 21® professional champion to help you with:

• Arranging showings
• Tracking the properties you've seen.
• Identifying homes that meet your criteria - refer to your "what's right for you" list

After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.

Working With An Agent

Buying a home is one of the most important decisions you will make. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and knows well the area where you want to live. When you choose a CENTURY 21® Agent, you're dealing with a professional who understands your concerns and will provide you with the personalized service that makes all the difference.

With more than 121,000 agents, speaking 104 languages in 8,000 offices in 73 countries and territories worldwide, the CENTURY 21 network is your edge to help you navigate the life changes that real estate decisions can bring. What should you expect in your first meeting with a real estate agent? A CENTURY 21 agent typically will talk to you about the neighborhood where you want to live, home prices, schools, transportation, and the surrounding commercial and residential areas.