There are really two aspects to that question: what type of home should you buy, and how much can you afford comfortably. The two parts work hand-in-hand. Start by making a list of your minimum requirements for a home, and then add amenities that you would like, but aren’t essential. Consider the living space, storage, the community itself, school district, distance from your job, and public transportation.

Along with the mortgage banker, I help my clients through the process of deciding what they can afford so they won’t become “house poor.”

For many people, they know the right location when they see it. Do you like the urban environment or the rural? How far away is shopping for necessities? How close do you need to be to family and friends? How is the school district? Does the area have a low incidence of crime? If you find an area that interests you, talk to the people who live there. They can be your best source of information. I assist all my clients with picking a location that suits them best.

The school systems often provide great information on their websites that give pertinent details about facilities that serve K-12 students. The websites can give class sizes, academic details, calendar of events, proficiency results in various subjects, graduation percentages, sports, and extracurricular activities.

Most loans have 4 parts: principal, interest payment to the lender, and an escrow account for the homeowners’ insurance and the property taxes. All of these components either pay off your obligation to the lender or protect the lender’s — and your — investment.

Most mortgages are written for 30 years, but some home buyers elect to go with 15-year mortgages to build their equity faster and cut interest costs.

You should budget the monthly cost of electricity, water, natural gas or propane, sewerage, trash collection, internet, and cable TV. Many of these charges may be new to you if you have been renting because they were captured through your rent payments.

You should also think about the cost of lawn and snowplowing service if you don’t intend to do this work yourself. You may also have homeowner association or condo association dues which may include some or all of those services.

The research report that I provide to my clients free of charge gives good approximations of the property taxes. It’s worth keeping in mind that your mortgage interest and real estate taxes often are deductible under federal income taxes, but also consider the possibility that your property taxes may rise over time.

Congratulations on reaching this stage! Now’s the time to keep your excitement in check while you examine the home’s features from an impartial basis. Consider the number of bedrooms and bathrooms with an eye to how they will serve your present and future needs. Take a close look at the floor plan and kitchen use. Consider the age of the mechanical systems and appliances that remain with the house. Determine how your furniture will fit in the home and whether or not there is enough storage space. Take a realistic look at the potential replacement of carpeting, flooring and the roof.

The U.S. Department of Housing and Urban Development reports that individuals usually look at 15 homes on average before selecting one to buy. While that is an interesting statistic, every one of my clients has unique requirements, and my goal is customer satisfaction.

I’ve had some clients that find the right home after seeing fewer than 5 houses, and I’ve had other clients that have viewed more than 40 before buying their dream home. I consider my job done when my client is happy, and I’ll work with them as long as it takes to make that happen.

As a rule of thumb, a home buyer has to cover three costs: earnest money, the down payment on the property, and closing costs. If you submit an offer on a house, you normally place a deposit down as earnest money to show good faith to the seller. This money goes into an escrow account. The down payment on the house is generally determined by your lender, anywhere from 3% to 20% of the purchase price.

Closing costs are paid at the settlement of the transaction. These costs cover various fees your lender charges and other processing expenses. Your lender will give you an estimate of your closing costs so you know what to expect.

Before you go to closing, your lender is required to give you information that will explain the closing costs, a list of documents required at closing, and the total amount of money you will owe. That amount is usually in the form of a cashier’s check made payable to the title company handling your closing.

You will be asked to review and sign a number of documents that transfer ownership of the property based on the terms of sale. These are binding contracts, so it is vital that you read each document and consult with your lender and/or real estate broker if you have any questions. The seller will also be signing documents and both of you will receive copies of all closing documents for your records.