Discuss with your agent the type of home you believe will be right for your needs. Is your family growing? Do you entertain a lot? Garden? Barbecue? Work at home? Are you a chef? A wardrobe buff? Are you a fixer-upper or a total couch potato?

Your realtor's expertise and experience will be crucial in helping you find the right home of your dreams. He/she has access to the Multiple Listing Services (MLS), which provides information on virtually every home for sale in the market. This is a useful tool because it provides the most current comparative information available for more informed shopping.

In addition, your agent will show you homes that you can comfortably afford. He/she will have the resources to help you understand how much a lender will let you borrow and on what basis it is calculated. Once you have calculated a price range, your realtor will work with you to the establish criteria that will lead you to the right home.

When you are ready to make an offer, your realtor can assist you. He/she cannot suggest a lower price than what is listed, but he/she can tell you what comparable homes are selling for in the same neighborhood. Your realtor will act as the intermediary between you and the seller who is likely to also be represented by an agent. If there are negotiations over price, closing dates, contingencies, and items - such as appliances - to be left or taken, your realtor will be your representative.
Once your offer is accepted, you will have a lot to do in a short period of time. Your realtor will direct you to a lender, and inspection and insurance professionals and Fidelity National Title for your escrow and title needs. He/she will keep you on track and organized.

Shop Smarter...Not Harder

Fine tune those dreams of your next home by working on the answers to two questions:
o How much house can you afford?
o What are your needs and preferences in a home?

How Much House Can You Afford?

Though you may be willing to spend until it hurts, the name of the game is how much a lender calculates you can afford. Your realtor will put you in touch with a lender that he/she trusts to help you through the financial process of pre-qualifying (targeting the amount that a financial institution will lend you.) In general, lenders allow your total monthly housing costs to go as high as but not more than 30 percent of your gross monthly income. The second requirement is that not more than 36 percent of your gross monthly income can be tied up in total monthly house payment and payments on outstanding long term debt.