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Buying a house is different from buying a car. It’s process is more complex. These tips will help you find a house that you like and that would fit in your budget.

Before you start hunting for a house to buy, review your monthly income, savings and expenses. Know how much you can afford. Find a relative or a friend who can help you to find a loan if you don’t have savings loan for home buying.

Decide where you would want to live. Select a location where there is a nice neighborhood with low crime rates, accessible to schools, church and market, and with increasing home value.

Deal with the right mortgage loan. Home ownership is a great tax shelter plus our tax favors home owners. If your mortgage balance is much smaller than the price of your house, the mortgage interest is much deductable in your tax return. For the first timers, you will be presented with different types of mortgage loans: Fixed-rate mortgages, ARM, Balloon loans. Make sure you are well-informed about them because it can be confusing when you don’t know much about them.

Select the best house to buy. Don’t apply the “red shoes” experience here. This is when you see red shoes on the mall and then you would try to fit it. It looks good on you and the price is right too. Did you buy them? No. You would go to another store and look for another red shoe, until you feel tired and exhausted not realizing that you already found the best. Do not apply this one when buying a house. Buying a house is different from shopping. When you find a perfect house, buy it. Don’t let it slip away.

Negotiate with the best prize. If you already found the house that you like, find the selling prize in the neighborhood and do not pay for a higher prize. You can always bargain for a lower and more reasonable prize. If the seller is consistent of the prize he is giving you, evaluate it. Remember that the true market value is determined by what buyers are paying right now for similar homes in the same neighborhood.

Buy the house. The finalization of purchasing the house takes place in the closing day. The closing day is typically 30 to 45 days from the seller and buyer signed to terms and Final Agreement. Review all the papers especially the items you paid to the seller summarized in the Settlement Statement with the help of your real estate agent. It is the main focus on the closing day and demand if you want any changes with it and if there are payments that you have paid when it should have been for the seller.