For the last few months I have tentatively set foot into the real estate market, and the along the way I have learned a lot. Following is a list of lessons learned.

1. Acquire a pre-approval letter from a lender before you begin your search.

2. Find a real estate agent who knows the area(s) where you plan on purchasing your home. Ask around for recommendations and referrals.

3. Take your time: there are homes that are new construction, old(er) construction, condominiums, fee-simple, foreclosures, short-sale, etc… Complete your research and know the difference between each, for there can be a lot of hidden costs that can be very surprising. When in doubt ask questions.

4. Before making an offer request good faith estimate(s) on a few different offers, for it is vital to know the FINAL monthly payment. Be aware that your monthly payment includes your mortgage, home insurance, property tax, homeowners/condominium fees, and mortgage insurance(if you are making less than a 20% down payment).

At the end, ask for advice and opinions, but make an educated and informed decision, where you feel comfortable with your financial commitment and will not be “house poor”. When you finally move into your new home, you want to be able to enjoy it too! Good luck and happy hunting.

http://www.allthingsfrugal.com/g.firsthome.htm

http://www.greenpath.com/articles/hints-for-first-time-homebuyers.pdf

http://www.oprah.com/article/money/realestate/20090828-orig-tips-buy-first-home

http://money.cnn.com/magazines/moneymag/money101/lesson8/