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Sold!
The Road to Home Ownership
By Mark Stackpole
When Kottman and his wife, Sakura, learned that they were expecting a sibling for their 2-year-old daughter, Sophia, they decided that the time was right to stop renting and to start shopping for a home. Kottman found out firsthand just how long the process can take, and just how many obstacles can await a homebuyer. "I felt like the bank I was dealing with gave me inaccurate information about the loans I was eligible for," he says. "I felt like there were catches that were not accurately explained to me."
The financial aspect of the process can be both confusing and demanding, leaving many potential buyers feeling discouraged. Lending institutions use the "28/36 Formula," which says that your total mortgage should not be more than 28 percent of your gross monthly income and all debts should not be more than 36 percent of your gross monthly income.
Given the anxiety that often accompanies such a major financial commitment, Brodman Summers finds that people can get so focused on how much they can afford, they temporarily lose sight of what they want in a house and out of life. "It is flattering to hear that your credit is good enough to qualify, but you need to take an introspective look at what kind of lifestyle is important to you; if you want to go out to a nice dinner once a month, will you still be able to?" she says. "A lot of people want to buy a big, fancy house, but forget that they have to furnish it and still buy food. It is very easy to be lulled into getting a bigger home (and mortgage) than you want or can afford."
Of course, for all of its potential frustrations, buying a home can be one of the most exciting things that can happen in a person's life. Brodman Summers advocates doing lots of homework, like taking virtual home tours on Internet Web sites or visiting the home pages of local real estate agents. Can you get your hands on a local newspaper or any of the free home-selling publications often found in grocery stores? "If you are going to buy your first home, you have to know what you want," she says. "If you have done the homework, you will be better able to deal with real estate professionals. Don't give into the 'we know what's best for you' approach that some real estate people will try to take."