So you say you want to buy a house?

The first thing a buyer should do and one of the most important parts of the buying process is finding a lender that you can trust to assist with successfully closing the deal on your dream home. I have made it a point to have all of my buyers work with a lender who I have dealt with, know there track record of coming through at the end with the loan promised and who is ethical. Some lenders don't understand when they promise a particular down payment and monthly mortgage payment, that the buyer is depending on that scenario to be true. I have seen horror stories of lenders promising a certain loan...just to get the business and drop the ball, sometimes causing the buyer to lose their dream home. I myself had a situation and was promised a loan, 1 week before closing I was forced to come up with $50,000 more and my monthly payments were twice as much as I was quoted, thank god I was in the position to close my deal and refinanced into a more attractive loan later. However, for most buyers this is their biggest investment and sometimes they have saved just enough to get into their dream home with very little wiggle room.
After we find the buyers true purchasing power...I ask them to make a wish list for their new home...no limits...we usually come pretty close to getting everything they want and need within their price range. There are a lot of different loans available so take the time to figure out your best monthly payment for your lifestyle...even though I love peanut butter and jelly sandwiches...you don't want to eat them for the rest of your life to own real estate. In this market, you can even ask the seller to carry back papers (which means allow you to borrow a certain amount, for a certain time at a particular cost...just as if they were a mini bank for you). Being creative is a great way to get into your first home, then build up equity and purchase other properties from the strength of the first property. However, remember...location, location, location.