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Financing

Home buying and financing always go hand in hand. Once you've done the tours of Newport Beach homes and picked the place of your dreams, it's time to do some real business and think of how you will afford it. These days, your options range from simple fixed mortgages to more elaborate schemes designed to fit unusual financial situations. There's no single formula that works for everyone; it's a matter of knowing your own needs and which solutions can best address them.

PlanOpen.com goes beyond planning open houses and helps you plan your purchase from start to finish. Read on for some financial planning tips that can help you stay on track.

What You Can Buy VS. What You Can Afford

What's the difference? What you can buy is the amount you can technically spend on a home. What you can afford is the amount you can comfortably let go of without sacrificing quality of life. Remember, it's more than just a purchase: it's something you're going to live with for at least the next few years. Take the time to sit down with your agent and figure out how much home you can afford. Once you have a better idea of your budget, you can narrow down your open house listings to those that fit the bill.

Beyond the Sale Price

There's more to buying a home than the sale price, and that's what gets most buyers off track. Learn to look beyond the sale price and assess the real cost of owning a property. During your open house weekend, take note of how expensive everyday living might be, how much you'll have to pay for transport, and whether or not you have to pay homeowner association dues. They may seem small at first glance, but they do add up-and combined with the monthly mortgage payments, it can cost more than you're prepared for.

Closing Costs

Another thing you have to consider is the closing costs: the miscellaneous expenses that add up during the course of your purchase. This includes legal fees, courier fees, property taxes, insurance, inspection costs, survey fees, and escrow fees. The costs vary from home to home, but you should expect to pay at least a few thousand at closing. If you're on a tight budget, you may want to ask your agent about closing costs and get a good estimate of how much you should prepare. You can also arrange for seller's assistance, wherein your seller agrees to let you put part or all of the closing costs into your mortgage. There are lots of ways to cut down-it all depends on how well you negotiate and conduct your open house search.

Choosing a Mortgage

Besides the home itself, your mortgage plan determines how well you'll be living in the years following your move. Some people can easily handle payments for thirty years, while others are better off with non-conventional plans that suit their finances. Before looking up open houses in your area, you'll need to know what your options are and how they can affect you in the long run. Again, this is something your agent can help with-ask him or her about mortgage options available in the city and decide which one works best.