[BRIGHT MUSIC]

Maria Trujillo:

So you're ready to buy a house or an apartment. That's amazing news. Before you put down your deposit, here are five guidelines to help you get the home and the deal that's right for you. Number one, identify your price range.

To figure out what you can afford, a good starting point is to take your annual salary before any taxes or expenses and multiply it by 2 and 1/2. In terms of funding, if you can purchase a home outright, most sellers are willing to discount their asking price. If you plan on getting a mortgage, estimate your monthly payment. Be sure to add in property taxes and any association fees.

Co-ops and condos may also have a monthly maintenance or common charge to consider. Remember, you will also need homeowner's insurance. Check that insurance is available in the area, since coverage may be difficult to purchase or very costly in some high-risk locations. Be sure to get estimates.

Once you figure out the total cost, ask yourself, would I be comfortable with this expense? Number two, find a location that suits your needs. Be sure to ask yourself questions such as, how far is this location from where I work? And how long will the commute take?

Is there public transportation? Where is the nearest hospital? How far away do my friends and family live? You might also want to research the public schools.

Good local public schools usually mean a house will cost more. You'll have higher annual property taxes, but your home is more likely to retain its value over time. Number three, assess the asking price. How do you know how much a house is worth?

One of the best ways to estimate a home's true value is to look at recently sold comparable houses in the area. Ask your real estate agent for this information. Speaking of real estate agents, number four is to make sure you're working with skilled professionals. Speak with a few real estate agents before selecting one.

See who's willing to listen to you, communicates well, and has a strong knowledge of the local market. Before you close, you should consider hiring an independent inspector who can tell you if the house or the apartment is in good working order. They can confirm that the place is as advertised or not. If not, you may want to renegotiate the price or even walk away from the deal.

You also want to use a qualified, experienced real estate attorney. The attorney will review the contract and investigate any liens or deeds associated with the property. They can also advise you on how to own the property. Should it be under your name, jointly with a spouse, or through an entity?

The fifth guideline is to choose your lender wisely. Be sure to ask family and friends for their experience with different lenders. Every lender is required to give you a good-faith estimate of the cost associated with your mortgage. Look at the estimates from a variety of national banks, regional banks, and credit unions.

Compare them to make sure you're getting the best deal. OK. Now let's review the five guidelines. Identify your price range.

Find a location that suits your needs. Assess the asking price. Work with skilled professionals. And lastly, choose your lender wisely.

Buying a home is a big step. Be sure to get all the professional assistance you can. And if you're a Bessemer client, our advisory team is ready to help you throughout the process. Together, let's make sure you're happy with your new home.

[UPBEAT MUSIC]