by Sara W.

Created on: February 17, 2007   Last Updated: August 18, 2009

The decision to purchase a house should never be taken lightly. With all of the factors to consider, finding a house that is right for you can seem like an incredibly overwhelming process! But the process can be narrowed down to a few crucial elements. Here is a list of the top five considerations that every home buyer should make before signing on the dotted line.

1. Consider The Builder

Who is your builder and what is his reputation? Has he built several other houses in the area? Perhaps your potential new home is located in a subdivision full of brand new homes that he has built. Before you commit to purchasing the house, you should perform a walk through of one of his unfinished homes. Check out the quality of the structure and the types and brands of materials that the builder used. Make sure that the builder did not cut any important corners. This is your future home you are thinking about! Many builders crank out houses in no time at all in order to keep up with the demand. If you feel that your builder has sacrificed quality for quantity, he probably has. Another good idea is to go door to door in the subdivision that he has built and ask current owners' advice. If they feel that they have been ripped off by the builder, they will be more than happy to tell you about it.

2. Consider Your Finances

Now that you've found the perfect house, your next step is to head to the bank. But watch out! Just because your lender says that you are approved for a certain amount, it does not necessarily mean that you can afford the payments. Only you know your finances better than anyone else, including your lender. Your bank might say you are qualified for a two hundred thousand dollar home, but are you really ready to take on those fifteen hundred dollar per month payments? Always go with your common sense and your gut. If you have an uneasy feeling about the amount of the loan, don't do it. Find something that resides within your means and you will sleep much better at night.

3. Consider The Risk

Just as you should consider your ability to pay a loan, you should also consider the risk of any loan. The more you are financing, the greater the risk you are taking. For example, if you don't have any money for a down payment and finance one hundred percent of the cost of the house, you are taking on the greatest amount of risk. Risk factors that must be considered include job stability, marital longevity, and life style. It is never wise to assume a great amount

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