Buying a home is the largest purchase you’ll likely make. No wonder you’re stressed. Where should you look? Can you afford it? What will happen if interest rates rise? It may all seem daunting, but you can make it more manageable with a little planning. Here are a few things to figure out before you make the leap.
Get your financial house in order
Figure out your net worth, which is your assets less your liabilities.
Talk to a Broker or your Bank
It may be time for a mortgage broker or adviser at your bank.
Terms and rates
The next decisions revolve around how long you want to lock the mortgage in and than will determine the rate of interest you pay. This is called the mortgage term and can be as little as six months or as long as seven years. It locks you in to a set of payments for the length of the term.
Get a Real Estate Lawyer
Line the lawyer up in advance and explain your plan. That way, there’s no surprise when you put in your offer and come back to him with the deal.
Have Realistic Expectations
Make a list of the things you want. Do you need a two car garage? Space for a home office? Are you going to have children? Is it a good location?
Stick to your plan
Understand what your spending limit is and don’t go over it. A pool might be nice, but it is not a necessity. Buying a home is ultimately a compromise of needs versus wants.
Buyer agency agreement
Make sure that your agent represents you. A buyer agency agreement helps to reduce conflict of interest since the brokerage represents you exclusively. The seller’s agent represents the vendor.
Get a Home Inspection
A home inspector will check for structural and electrical defects, roofing and foundation problems. This can come back to haunt you later. It also gives you some negotiation room when you put in your offer.

And remember, a good realtor will remind you of these tips and look after the details for you!