Article posted by Jerry Armen:

Whether you are buying a home for the first time or have been through this process before, purchasing real estate is a major investment – one that should be taken very seriously. Although it can seem overwhelming at times, knowing the right information can help you make a better informed decision, and might even make the process fun. Here are three important tips to consider when buying real estate.

Buy within your means. Before you can start shopping for homes, you will need to create a budget and find a home or neighborhood that fits into it. Unfortunately, the monthly mortgage is not the only cost you will need to consider when buying a home. You will also need to consider a down payment, closing costs, and other costs.

The first step is determining the cost of the homes in the area you wish to live. Next, use a mortgage calculator to help determine the amount you can afford. Factor in complete monthly costs, including homeowners insurance and taxes. Once you have determined the entire cost of owning a home, you can analyze your budget to see if there is room for a home. According to Fannie Mae, you should not spend more than 28 percent of your income on housing costs.

Sometimes the information you gather might tell you whether you can afford to live in the town of your choice, or whether you need to shop around in a more affordable area.
Differentiate between the things you want and need. When it comes to buying a home, what you need and what you want are two different things. For example, you might want a house with a pool for recreation, but you might need five bedrooms to accommodate your family.

Write a list of the features and amenities you absolutely need a home to have. While you might not be able to have everything you desire on your want list, at least you will have peace of mind that your requirements are met.

Find an experienced real estate agent. If you’ve decided that you can afford to buy a home and have taken the time to write down the things you want and need, it’s time to find a real estate agent in your area. Look for a buyer’s agent who will work on your behalf during the transaction.

An experienced buyer’s agent can help you find the home that you need within your budget. They can also help with all of the paperwork, including legal contracts.