1. Prepare yourself for the house buying process 

Don't "low-ball" your initial offer. Sellers tend to give less credence to such an offer and may reject it without making a counter offer. Or their counter offer is very close to list price, if they feel insulted. Know the local market conditions. Understand the current market value of our home by comparing it to similar homes in the area that have actually SOLD.

2. A pre-approved mortgage loan is a requirement.

Avoid buying the most expensive home on the street. The best situation is to purchase the worst home in a good area, rather than the best house in the worst area.

3. Prepare to have liquid funds available for the earnest money deposit. 

Sell stocks, transfer funds, arrange loans or gifts ahead of time in preparation for a focused and perhaps competitive home search. If you are searching for a home in a very desirable area the minimum deposit expected is 3% of the purchase price or more.

4. Arrange an accelerated bi-weekly payment plan on your mortgage.
On your mortgage, you will save the most money if you opt for an accelerated bi-weekly payment plan, or if you double up one payment per year. This will shorten your amortization periods by over 6 years!

5. Determine the maximum you can *comfortably* afford now and for the future.

Get educated about lenders various loan programs: fixed rate, ARM, interest only, hybrid.  There are many, many options to consider, however, be sure that you understand the details of whichever loan you choose.  Visit the Mortgage Professor’s website at www.mtgprofessor.com for in-depth advice on your mortgage options, on-line mortgage calculators and FAQ's. You can even write to him with your specific question.

Antonette Burroughs, Realtor^®  t  510-604-6255  t Antonette@AntonetteBurroughs.com