Ideally, you have been pre-approved by a lender and know how much you can borrow. You should have a well-founded idea as to what your "must haves" are. You will be consumed with the urge to pop into every open house on the weekend, surf listings on-line when the boss is not looking, plus an additional three hours of surfing at home in the evening. I've been there! It is nice to dream; however, when a sack of money is at stake, a reality check is required.
How do I know what I want?
You will need to determine what your real needs are (must haves) as opposed to what would be nice to have. For example:
- Are you a dedicated bachelor looking for a one bedroom condo or someone who wants to emulate "The Waltons family" and needs a McMansion?
- Do you want a garden or are you in love with the concept of concrete?
- Are you interested in a condo in party central Belltown or a Townhouse in a quiet suburbia in Magnolia?
- Brand new construction in Bothell or a 1920's Craftsman fixer-upper in Wallingford?
- Do you want to live close to work or not be reminded of the place on the weekends?
Bedides which type of home, neighborhood etc, you should also consider whether are are willing to consider foreclosure properties, short sales and bank owned homes. Ask your real estate agent to review the differences involved in buying these properties, particularly in relation to the time required to close the transaction and potenially how long it can take to get a response form the seller (the lender)
It is a good idea to set aside some quiet time to think about the home that you will live in day in, day out for potentially many years to come. Obviously, your choices will be determined by the amount you can borrow.
I have put together a wish list/reality check list with a bunch of questions that will help you come to a conclusion as to what might work best for you. If you have a partner, then take the test separately. It will be interesting to see how closely or differently your lists will compare.
There are two parts. What are the your absolute "must-haves" (reality check) items and what are the "nice-to-haves" (chance to dream)? Sit back, close your eyes and visualize yourself in your new home. What do you see?
Return to Buyer's step 2. Financing my new home
Continue to Buyer's step 4. Finding my new home |
