The American Dream has always had a primary tenet of owning your own home. In the wildly fluctuating markets of our modern economy, it is best to be over-prepared before purchasing. It is a terrific time to buy a home, with inflated home values finally settling back toward reality and many current home-owners falling victim to "creative financing" and being forced to sell their homes to avoid bankruptcy or massive debt. Their loss is your gain. But before you strike this juicy target, there are some things that you should know...

1. How much do I have to spend? This is your most important question, and will affect all the other questions. First and foremost, obtain financing before you go looking for a house. The days of great houses hitting the market to bidding wars and one-week closures are gone. If a house you like sells while you are getting your financials in order, there will be another just like it on the market next month. NEVER finance through a real estate agent. Your own agent is bad, but the agent selling the house should be avoided like the plague. Do not finance your home through anyone that is getting a piece of the action. Those individuals will push you to sign the loan so they can get their cut. Patience will always work in your favor.

2. What do you want in a home? Is size your number one concern? A pool? Three-car garage? Sun-roof? Study? Create a list of features that you absolutely MUST have, then put another list of things you would LOVE to have, then a third list of the cherries on top, the things that would be great. Each house you look at, check the lists. It is unlikely you'll find a home in your range that has everything on each list (or else you need a longer list!), but you should have a measuring stick. Agents will sell you on things you do not care about. Marble Tile or a brand-new garbage disposal may not be high on your priority list. Look out for the things that YOU want and need, not what looks good on a listing.

3. Where do you want to live? How far can you commute to work? Are there good schools in the neighborhood for your kids? Will you have to install a security door and bar your windows? This is a premium concern, and something you need to decide on early. You can waste a lot of time looking at beautiful perfect homes three hours away from your desired location, but you are not going to buy one (generally). Decide upon some specific areas that you want to live, where homes in your price range are on the market

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