This is the first of a series of posts designed to help keep you from driving off the cliff as you navigate the treacherous road to first time home ownership. I decided to write this because so many people got burned by all of the scam and sham mortgages that were (and still are) out there. I have been a homeowner for 20 years. I have bought 4 houses and sold 3. I have lived in my current home for 15 years, and refinanced my mortgage on this home 3 times.

That said, I don’t pretend to be an expert. I am definitely not the end-all and be-all of home buying and home ownership. But, there are certain things that don’t change. These are the fundamentals. I learned them through experience, and I want to share them with you for what they’re worth.

If you find anything in this series to be helpful, I would appreciate it if you would send me a comment and let me know. Now, let’s get started.

First, before you even start looking at houses, answer the following questions:

• Why do I want to own a home?
  Are you planning to start a family? Do you need space for an expanding family? Whatever it is, you need to know the answer to this question to help you answer the next two questions. But, before we move to the next questions, let me be clear about one thing: A house is not an investment, so don’t treat it that way! I don’t care what all those TeeVee adds say. You buy a house to live in, not because it’s a good investment. Once you start treating your house as an investment, you are headed down the long road to possible foreclosure. Keep this in mind. Now, the first question is:
• What do I need from a home (also known as the List of Musts)?
  These are the things that are showstoppers; things that the house absolutely has to have for you to even consider looking at it. This is the place to sit down with a sheet of paper and list all of the things the house must have. This list will take you a little time to put together, because you need to do as thorough a job as possible. This is the place where you list things like number of bedrooms, number of full and partial baths, air conditioning, gas or electric heat, furnace or boiler, city water or well water, city sewer or septic system, etc. Once this is done, or at least well on its way, ask yourself:
• What do I need in a home (also known as the List of Wants)?
  These are the things that would be nice to have, but won’t necessarily bust the deal if they aren’t there. These things might include things like heated garage, fireplace, water softening system, deck or patio, hardwood floors, etc. This list will also take you some time to put together.

Don’t be surprised if you or your significant other can’t decide if something is a Must or a Want. No need to quibble over it now. Just list it on both sheets of paper, and also on a third sheet of paper labeled: “Undecided”.

All done? Congratulations! You’ve just crossed your first major hurdle. You now know what your house has to have as opposed to what you would like for it to have. This may seem like something simple, but as we move on in the process, I think you’ll find it to be one of the most valuable things you’ve done.

Oh, one other thing: Start looking into getting a real estate attorney. You don’t have to contact one just yet, but talk to friends or coworkers to see if you can get some good recommendations. Check out the yellow pages. You know the drill. And if you’re thinking about not hiring an attorney so you can save yourself a little cash: Forget it! This is a business deal. Uncle Roscoe who’s done this a hundred times, or your brother-in-law who took a couple of classes once, just plain won’t cut it. You need somebody who can sit at that table at closing and know all the ins-and-outs of every piece of paper and every line item on those pieces of paper. You need someone in the process who is your advocate, even up to the point of contacting the mortgage company if they are dragging their feet (I actually had to do this once.) That attorney is your guarantee that you are getting what you think you are getting. He’s the guy with the clout.

Next up, we’ll talk a little about how to determine how much house you can afford.

© 2009, Mac Williams. All rights reserved.

• Tips for First Time Home Buyers – Part #2
• Tips For First Time Homebuyers – Part #3