Make A Serious Offer
The general Rule is that the deposit should be at least 3-5% of the offering price. Remember the larger your earnest deposit the better your chances of having the offer accepted.

Be Cautious
Do not max yourself out financially. Try to think about your personal needs and lifestyle. It can help keep your home purchase price in line with your financial comfort level.

Remember, the stock market affects the housing market. If the stock market is stable, housing prices remain stable. If the stock market is declining, housing prices drop. Most people tie up their assets, which we call wealth, in one of two main places: homes or investments. If investment returns are high, people generally buy larger homes and spend more on their housing needs. However, when investment returns drop, most people are less willing to spend the high dollar for homes and are out looking housing for bargains.

Some Advice
If your new mortgage reads "payment must be------or more", you have the right to and are free to make extra principal payments every month. This is a wise investment. Even $25 extra a month pays your loan off sooner and saves on interest payments.

Consider paying your mortgage every two weeks. To do this, divide your monthly mortgage payment by 2 and pay that amount every two weeks. This equates to making 13 monthly payments every year and with a 30 year mortgage can lead to a mortgage pay off 7 or 8 years earlier! Always check with your mortgage lender for permission to do this and to get exact payoff information.

I Can Help
Always check with your REALTOR® when in doubt about purchase and financing. In this age of heavy telemarketing and abundant TV commercials, you want to deal with a lender you can trust. Your REALTOR® can recommend reputable mortgage representatives who can help find the best rates and mortgage programs for you.

Financial Planning
The first step in the home search is always to get a pre-approval! This will allow YOU the decision of what price home you can afford. Many people will choose to purchase a home that is well below what they can afford due to upcoming expenses such as college, weddings or just because they don’t want to be “house poor”. Whatever you decide use these resources to your advantage and complete the first step…getting your mortgage!

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Plan Ahead For Your Mortgage
There are a few financial tricks to know and traps to avoid when you are thinking about buying a house. Qualifying for a mortgage is far more difficult than qualifying for a credit card or a car loan. Although there are literally hundreds of different mortgage programs available, they are almost all based on the same qualification information - some combination of income, monthly expenses, and credit history. Planning ahead, in some cases as far as one year, can help many people avoid hassles.

Using "Gift" Funds
If you are receiving a gift for all or part of your down payment, arrange to receive the funds six months before mortgage application. Place the funds in your own bank account. Reason: many mortgage lenders place restrictions on the amount (percentage of down payment and the source of gift funds. However, when you make mortgage application, the lender checks only three months' bank statements. If the funds are present on the oldest statement, they are "your" funds, not a "gift". If your parents plan to give you a gift just in time for closing, they must be prepared to show your lender that the funds actually exist in their bank account at the time you apply for your mortgage. All parents are different, but many of them strongly resent having to supply their own bank statements to prove the gift.

Large Purchases
Okay, you are excited about buying your house but you need new furniture and appliances. Your car is falling apart. Defer any purchases--particularly credit card or installment contract purchases--until after closing on your new home. Monthly credit card obligations can ruin your expense ratio very quickly. Your idea of the debt you can handle and your lender's idea of the debt you can handle may be two entirely different numbers. Unless you have a VERY high income, do not buy a new car or a new boat prior to applying for a mortgage. Car leases count just as car payments do. Current Mortgage Payment History Lenders check your credit history. If you currently own a home, make sure you do not have any late mortgage payments for 12 months prior to applying for your new mortgage. If your budget is tight, ALWAYS pay your mortgage first.

Avoid Credit Disputes
If you get into a credit dispute over a small sum, just pay it. It may be against your principles to do so, but the incredible hassle involved in trying to clear it up isn't worth it. Unfortunately, the credit bureaus are powerful; individuals are not. Hospitals are particularly notorious for reporting small unpaid balances to credit bureaus. Frequently, these are amounts people assume have been paid by the insurance company but for one reason or another are not covered by the insured's policy. Credit bureaus do make mistakes, but unfortunately the burden of proof is on you, not on them. Check your own credit several months prior to even looking for a house. This will give you time to clear up any problems or misunderstandings! A little financial planning and detective work prior to house hunting can go a very long way in making your mortgage application easy and stress free.