You have been approved for a mortgage and you are excited. You have obtained a pre-approval from your mortgage broker or bank and you are ready to see home homes. You may have been approved for more than expected or maybe even what you figured. Either way you are thrilled and are ready to move into the world of home ownership!

So what is your next step? You call a Realtor, weather it is someone that was referred to you or maybe you had seen their business card; either way you are ready to see some homes and you want to find that perfect place to call home!

 Although you are excited and you are ready to move forward there are a few things you must keep in mind to ensure you are prepared and not going to get in over your head. My professional experience and personal instincts have proved to be right time and time again. Here are a simple guidelines to follow to ensure what you do today will not effect tomorrow;

1. Yes you have been approved and you want to go out and find the best house you can for the amount you can spend. Keep in mind, things can happen- it is called life and it does happen to all of us at one time or another. You may take ill and be out of work for 2 weeks or heaven forbid have a car accident and would be out of work for 3 weeks. Because of the things that happen in life we can not control, it is a wise choice to spend a little less than your approval amount. Figure this out on paper; if you were to be out of work for 2 weeks. Would you be able to afford the mortgage payment for that month? Find your comfort zone and run with it. Your Realtor will agree with you- it is better to find your comfort zone rather than spend your total approval amount.  You do not want to work and be house bound. You want to go out with friends, maybe go to a movie or a vacation.  Keep all this mind before you decide just how much you really want to spend on a house.

Here are some examples:

• You have been approved for $200,000. Your interest rate is 6% fixed for 30 years. Your mortgage payment without taxes and insurance would be $1199.10 per month. If you are 100% financing- there will also be PMI. (Personal Mortgage Insurance) Let's say between PMI, Insurance and taxes you add another $400.00 as an estimate- you are now at $1,599.10 per month.
• You decide you want to spend $180,000 rather than $200,000. The mortgage under the same terms would be $1,079.19 per month plus taxes, PMI and insurance- add another $300 for example and you are now at $1,379.19. This is a  $219.91 difference per month. It may not seem like a lot but it could make it or break if  you are short a paycheck because of unexpected things that happen in life.

1. Although structural inspections are optional- I highly suggest having the inspection once an offer has been accepted. Keep this in mind; Inspectors are professionals and they can find things that you or I would not even think about. It is for your protection to ensure you are buying a sound home. If there are serious issues with the home, you want to be able to address it with your agent so it can be negotiated with the sellers for either a credit for the repairs to be repaired before closing. You do not want to close and find out weeks or months later there was something wrong that could have been corrected.

When you are ready to find your dream home,downsize or relocate to Western Ma; call me and we can discuss your options to take care of your Real Estate needs.

                                                           MAUREEN STACCATO

                                                             Associate Partner

                                                         KELLER WILLIAMS REALTY

                                            Mobile:413-627-7699/E-fax:413-747-4607

                                               E mail me: maureenstaccato@kw.com