The general Rule is that the deposit should be at least 3-5 percent of the offering price. Remember the larger your earnest deposit the better your chances of having the offer accepted.

The typical homebuyer searches for a home for about 8 weeks and looks at 10 houses. If you have looked at more homes or for much longer, sit down with your REALTOR and redefine your needs.

Be Cautious

Do not max yourself out financially. Today's easy lending standards often mean you can qualify for a home that is more expensive than your financial comfort zone. Discuss your personal needs and lifestyle in depth with your REALTOR. It can help keep your home purchase price in line with your financial comfort level.

Remember, the stock market affects the housing market. If the stock market is stable, housing prices remain stable. If the stock market is declining, housing prices drop. Most people tie up their assets, which we call wealth, in one of two main places: homes or investments. If investment returns are high, people generally buy larger homes and spend more on their housing needs. However, when investment returns drop, most people are less willing to spend the high dollar for homes and are out looking housing for bargains. Be sure where you want to put your money before you do it! 

Some Advice

If your new mortgage reads "payment must be------or more", you have the right to and are free to make extra principal payments every month. This is a wise investment. Even $25 extra a month pays your loan off sooner and saves on interest payments.

Consider paying your mortgage every two weeks. To do this, divide your monthly mortage payment by 2 and pay that amount every two weeks. This equates to making 13 monthly payments every year and with a 30 year mortgage can lead to a mortgage pay off 7 or 8 years earlier! Always check with your mortgage lender for permission to do this and to get exact payoff information.

Your REALTOR® Can Help

Always check with your REALTOR® when in doubt about purchase and financing. In this age of heavy telemarketing and abundant TV commercials, you want to deal with a lender you can trust. Your REALTOR® can recommend reputable mortgage representatives who can help find the best rates and mortgage programs for you. Call Today!