Maybe you’re tired of throwing away your cash on rent, or you and your hubby have just got a hankering for a bit more room. Don’t let home buying become like planning another wedding: Realtor Teresa Ford of FairView Homes in Washingtonville, NY, shows how to make the big purchase, stress-free.

Before Buying

For up to several years prior to purchasing, “Save, save, save for that initial 10 or 20 percent down payment,” Ford says. In addition, make sure that you will always have at least three month’s worth of mortgage payments set aside in case of a financial emergency.

Choose a Location

Location, location, location! Clichéd as it is, this remains the most important thing. So sit down with your spouse and discuss the issues that are important to you in choosing a neighborhood. Ford recommends going over the following main points as a first step:

1. Is the commute to work a reasonable distance for both of us?
2. Are major highways or public transportation easily accessible?
3. Does the community offer a lifestyle that we would be happy with?
4. What are the demographics?
5. Are we are comfortable with the type of people that live there?
6. Are major shopping areas conveniently located?
7. How far away is an appropriate place of worship?
8. Are there medical facilities nearby?
9. Are there recreational facilities, such as parks, pools, or health clubs nearby?
10. Are the neighborhood schools safe, challenging and successful (if you plan on having children)?

Set some time to view different neighborhoods with your husband and then try to narrow your search to one or two.

Whatever you do, do not go for a bargain home in an unfavorable location. It is essential that both of you be absolutely comfortable with an area. After all, you will want to spend many happy years both on and off your property.

Get Your Mortgage Set

Don’t be tempted to start searching for your dream home just yet. First, make a visit to a lender or mortgage broker to make sure that you’ll be able to pay for it.

To prequalify for a mortgage, credit-reporting agencies will determine how well you have paid your previous debts. If your immaculate credit history shows that you’ve paid your debts as agreed and on time, you will easily get credit and you have little to worry about. If you’ve had run-ins with bill collectors or bankruptcy, however, you may have to resort to what is known hard-mortgage financing or street money—credit with a sky-high interest rate.

Don’t be discouraged; it is better to be objective at the beginning so that you know what your options are.

Financing Options

Don’t be confused by the spectrum of loans available. There are four basic types, and there is one fit for you. Look for a:

• FIXED RATE if you want stable, predictable mortgage payments. Fixed-rate loans, as their name implies, have a fixed interest rate for the entire life of the mortgage, usually 15 or 30 years.
• ADJUSTABLE RATE if you have a lump sum of money stashed away (to pay off a large chunk of the loan early) OR if you plan to have a higher income in the later years of the mortgage, so that you will be able to afford the higher interest. The interest rates on these loans start very low and rise in subsequent years.
• JUMBO LOAN if you need to borrow over $252,700.
• BALLOON LOAN if you plan to live in your home for less than five to seven years. This loan gives you a lower interest rate than a fixed-rate, but you must pay it off within this short interval.

According to Ford, jumbo and balloon loans are less common, usually only for “self-employed, higher income, and short-term mortgage buyers.” Online calculators like the one on Bankrate.com can help you determine which type of mortgage is best for you.

Find a Realtor

Buying a home is a huge responsibility, so find someone trustworthy, honest and experienced who will help you get through it. A good broker will be knowledgeable not only about local homes, but also about the area’s demographics and facilities. He or she must also be licensed by the state. Find and stick to one broker that you are comfortable with.

Get Inspected

“It is essential to hire an inspector for a re-sale home,” Ford says. “They are trained to know where to look for defects and to determine the probable remedy and cost.” This is especially important since the seller may not tell you about these problems, and the broker may not have noticed them. Ask your broker to recommend an inspector. Don’t try to save a few bucks at your safety’s expense.

The Fine Print

Here are a few other things to remember:

1. Always bring your attorney with you when you go to sign a contract, and don’t sign until you make sure you understand everything.
2. Watch out for restrictive covenants, or indentures, which can be part of the contract for a particular property. These restrictions can forbid things like above-ground pools, hanging clothes lines, or boats parked overnight on driveways.
3. If you’re buying an older home, ask about a home warranty. Ask your lender about homeowner’s insurance to cover fires, floods, or other natural disasters.

About the Author

Mariya Lysenkova is an assistant editor at ModernBride.com.