The location of your new home should be carefully chosen. Think about the kind of city, community, and neighborhood that is right for you. Being close to work is sometimes important, but you should also weigh the availability of shopping, police and fire protection, hospitals, schools and day-care. What kind of traffic does the area have? How about trash and garbage collection, recreational facilities, houses of worship, and other community amenities? Sometimes it is a good idea to drive or walk around prospective neighborhoods and talk with the people who live there.

Consider your lifestyle when selecting a suitable house. If you love to cook, you will want a well-equipped kitchen. Maybe gardening is important to you. Perhaps you need a home office. If you have children, are there other children of the same age in the neighborhood? Does the home have enough parking?

Consider writing down all the things you and your family, need and want in a home and neighborhood. Be imaginative but realistic. Spend a few hours determining precisely what your needs are before you begin your house search. It is important to make a realistic "wish list" to try to narrow down your choices of properties. Hunting for a home can be a time consuming process. Even more so, if you haven't determined ahead of time what you are going to look for.

Don't make the mistake of confusing a want as a need. Not that you shouldn't have what you want, just be careful to consider the difference between what you truly need and what you would like to have. For example, carpet color can always be changed in the future. Rooms can always be painted a different color.

Some examples of needs would be:
• Enough square footage to live comfortably
• Enough bedrooms to accommodate your family
• Adequate number of bathrooms
• Adequate lot size for children to play on
• Enough storage space
• Handicapped facilities
• Close to schools and day care

Some examples of wants would be:
• Carpeting color, paint color
• Pool or Jacuzzi
• Wood floors
• Eat-in kitchen
• Bay windows
• Built-in entertainment center
• Brass lighting fixtures
• A pretty view

Homeowner's Insurance: Insures the home against damage or theft. This insurance is structured to protect both the home owner and the lender. There can be a good deal of variation in policies. Shop around for the best deal just as you would for auto insurance. There are a wide range of policies and prices. In flood prone areas, it may also be required to purchase additional flood or rising water protection.

Title Insurance: Insures that the title or deed to the home is "clear of defects" and marketable. This is only issued after a successful title search. Title Insurance primarily protects the home owner. For instance, an unknown additional seller (for example an ex-wife or husband) could suddenly surface months or even years after you bought the property.

Personal Mortgage Insurance (PMI): This insurance, although paid for by you, protects the lender against a loss should you default on the loan. It is required on most loans that have less than a 20% downpayment. Once you have 20%+ equity in the property, you can generally have the insurance removed. We can show you ways to eliminate PMI if you do not have a 20% downpayment.

Do not confuse PMI with mortgage life insurance. Morgage Life Insurance pays off your mortgage should you die before the mortgage is satisfied. You can purchase Mortgage Life Insurance through your insurance agent, but it is not required.

Most home-shoppers today are aware that it is a good idea to hire a licensed contractor to inspect a house for major defects before buying. Buyers should pre-check the structure so they can direct the contractor to report on specific details.

On the outside:

• Check for sag, alignment of walls, missing mortar, broken bricks, and cracks in walls
• Check wood siding for peeling, an indication of too much moisture in walls
• Check for freshly painted window sills where rest of house is not painted - paint could be covering rot
• Check the roof for broken or missing shingles, tar paper bubbles, broken patches
• Check metal sheathing around chimney and ventilators - should be watertight and made of non-rusting materials
• Look for leaks or breaks in the gutters
• Check in the attic for watermarks on the underside of the roof

On the inside:

• Check for warped doors and loose doorknobs
• Listen for creaky floors or stairs
• Check carpets for water stains
• Check tile floors for loose tiling and cracks
• Inspect bathroom tiling for loose tiles and crumbling grout indicating excessive moisture between tile and wall
• Look at plumbing for adequacy
• Check for excessive amount of electric cords in sockets indicating inadequate electrical capacity
• Check for adequate closet and storage space
• Water heater should be 40-50 gallons
• Examine walls and ceilings for repaired cracks or patches - may indicate structural problems, leaks, or termite damage
• Look for patches or water stains under and around windows and sills indicating improper sealing
• Examine wood trim for patches or sections that appear to have been replaced indicating possible termite damage

Don't be afraid to ask questions:

• Is the house built on a landfill? Settling can cause sinking and eventual cracks in plaster and more serious structural problems.
• Is the foundation's exterior surface waterproofed?
• What's the R factor (ability to resist heat flow) of the insulation? Good ratings: R 22 for ceilings, R 13 for exterior walls. For colder climates: R 38 and R 19.
• Are windows insulated or double-glazed?
• Has the house been protected against termites?
• What's under carpeting?
• Is the waste system hooked to a city sewer?
• Are major appliances and heating and cooling units on separate electrical circuits?

It is easy to overlook things that should be done before you move into your new home. Review this checklist for items that apply to your particular situation. Use this list as a guide and construct your own checklist.

1. Have your utilities turned on a few days before you move in.

• gas
• electric
• telephone
• water

2. Enroll your children in their new school.

3. Have your drivers license updated.

4. Fill out Change of Address forms at the Post Office.

5. Notify any necessary parties of your change of address.

• insurance providers
• credit card companies
• lenders
• magazine subscriptions
• book/music clubs
• banks
• attorney, CPA, broker, etc.
• friends and family
• IRS