Seven house hunting tips

House hunting is not easy. This is really being driven home to me as I look at vacation homes in San Jose, an area that has exploded in the last four years. I'd literally be lost without the help of a Realtor. Here are seven tips that will help you in your search.

1. Location, Location, Location. Location is crucial. Your dream home could be a nightmare if it’s in a poor location. How far is your commute to work from your front door? How good are the local schools? What about shopping, public transportation, services for seniors? What’s next door—a vacant lot or commercial property? Do you anticipate reselling the home in a few years?

2. Build a list. What do you need in a home? What do you want? What don’t you need? What don’t you want? List what you can and can’t live without. A few hours spent on this list will save you weeks. A good place to start: think about what you like (and dislike) about your current home.

3. Check out the market. Use the Web for a wealth of information about recent home sales prices, market trends, homes for sale, and neighborhood statistics. Your father never had this chance!

4. Talk to a lender. You know how much you would feel comfortable paying every month on your mortgage. But that doesn’t help you know exactly how much you’ll need to borrow for that mortgage. Other factors come into play, including the percentage of your down payment, mortgage insurance, property taxes, home insurance, adjustable interest rates and others. Your income, your debts, and your credit history also factor in how much you’ll be able to borrow. Ask your lender for a pre-approval letter. Looking at homes you can’t realistically afford wastes your time.

5. Use a checklist. Using the list you made earlier, make notes about the homes you visit. Ask yourself if you like the home you’re looking at now better than the one you saw last. If you do, cross the last house off your list. A spreadsheet makes your list even more useful.

6. Dress comfortably. House hunting is tiring, especially if you’re looking at ten or twelve homes in a single day. Don’t forget comfortable shoes. It’s hard to appreciate a home when your feet hurt.

7. Be ready to make an offer. If you know in your heart that you’re not really ready (financially or emotionally) ready to buy a home, then you’re wasting your time. Your dream home is probably somebody else’s as well. If that person makes an acceptable offer first, you’ve lost the home. If you’re really ready, go through a blank purchase contract ahead of time so you’ll know exactly what choices you’ll face when you make an offer.