Rhode Island Monthly's Bride 2007 by Diane M. Sterrett

Buying a house is the foundation of your new life together.  Our experts explain all the terms

and share their steps for building on solid ground.    By Diane M. Sterrett

From this day forward, major purchasing decisions are joint ventures requiring communication and negotiation. 

It's a big committment (second only to the one you're about to make on your wedding day).  With piles of paperwork, confusing jargon and important decisions, it can seem overwhelming.  Where do you start?...

...Lila Delman Realtor Nicole Harding's advice is to buy as soon as you can.  "Just get your foot in the market; your first house doesn't have to be your dream home," she says.  "It will appreciate in value and then you can leverage the equity to move up.  If you're renting, your landlord is getting all the tax breaks and equity, when for nearly the same money you could too."

FINANCING FIRST 

So you're ready to take the plunge?  Your first step, Harding says, is to consult with a lender--mortgage company, bank, or credit union--to get a sense of how much you can afford.  Many times it's more than you think.

"That was our biggest surprise when we started looking--we could afford much more than we originally thought," she says.  For a quick idea of how much you can afford, try the mortgage calculator on www.riliving.com.  When figuring your budget, don't forget to add in insurance, utilities, and maintenance costs.

Harding also advises that it's helpful to go through the pre-approval process early to get financing outlined so you'll be able to react quickly when you find the right house.

"There are so many creative financing options out there now that it's never been easier to get a loan," she says.  "It really pays to do your research and find a loan that is right for you first so you'll have the information you need. Closing costs, fees and points can all be negotiated."

..."It used to be you needed a 20 percent down payment," Harding says.  "But now you can purchase a home with as little as 5 percent down, and some programs even allow zero down payment."  But don't forget that lower down payments mean higher monthly mortgage payments.

If you need to save money for a down payment so your monthly payments aren't too big, Harding has some valuable "been there" advice.  "Don't spend as much on your wedding and use it instead for your house.  Cut back on the guest list extras and you'll be well on your way to having a down payment."  

The search is on..."When you start looking, remember that you're investing in a location, not a house.  Don't fall in love with a house first; you have to like the neighborhood and then you can fix the house.  Take some time to talk about both locations and homes and make a list of 'must-haves' and 'nice-to-haves' to bring to your Realtor," Harding advises.

Rhode Island Monthly's Bride 2007

by Diane M.  Sterrett