Are you a prospective homebuyer prone to worry? Then these tips might help!

• Approach home buying rationally… people have an innate fear of commitment, but fear is a terrible motivator.  There was a client who paid substantial rent each year rather than confront his worry that he would bungle a home purchase.  He was 83 by the time he summoned the courage to buy.

• Would-be buyers fret that they could select the wrong neighborhood... buy a defect-ridden house or overpay. The current economic uncertainty is another concern.

• If you're a worrier... the trick is to confront your fears squarely. "You have to resist the cycle of catastrophizing and make plans."

• Take realistic steps to guard against economic adversity… if your livelihood… or that of your spouse… leaves you exposed to the vagaries of the economy, it could be wise to have an extra cushion when you buy.

• One way to protect yourself... is to make a larger-than-required down payment. Instead of the minimal five percent to ten percent down, you could go as high as twenty percent. The idea of a large down payment is to minimize your monthly obligations in case you lose one income. Another strategy is to take a "lesser home" in the area of your choice. You'll want to break into the right neighborhood, though not necessarily with a perfect house. For instance, you could select a home priced at a discount because it needs limited kitchen and bathroom remodeling. Down the road, when you're comfortable paying for such renovations, you can expect too more than recoup your outlays for these rooms.

• Another way to protect yourself is checking for Structural defects...  Consider an independent home inspection. Careful examination by a professional will remove all doubt! Is that tiny crack in the foundation a repair nightmare or merely settlement? Are the walls infested with termites? Does your budget have room for thousands of dollars in reconstruction costs? For a few hundred dollars you can obtain an extensive inspection report that will point you to any structural defects in the building. Ascertain the cost of repairs prior to entering into a binding contract. Write your purchase contract subject to a satisfactory home inspection so you can renegotiate if the repairs are beyond your current budget. Or opt for another home more suitable to your needs.

• Avoid hidden and questionable costs at application time... Tax service fees, courier fees, underwriting fees, loan disbursement charges, or markup on court documentation fees -- by asking your lender to list exactly what fees are included on the federal settlement forms and what additional fees may be charged at closing. (NOTE: Some fee can be negotiated down or waived if you question them.)
• Retirement and condo or apartment living… You are now both retired from the workplace and are beginning to contemplate that a smaller residence is just what the doctor ordered. No more high maintenance yard work, shoveling snow or too many rooms to clean. A year after moving to what was once just the right size for the two of you, you find yourself missing those workshop projects that the family loves to receive, or tending the garden you spent years creating. Perhaps you are now facing widowhood and the condo walls speak too many memories. Purchasing a condo or apartment too early for your lifestyle is a grave error that can be avoided. Determine your needs realistically: 

Are the retirement activities in line with your lifestyle? Are the local amenities close by? Is the strata council open to family members, especially children, vacationing? Do you prefer a 55 and older building? Do the strata rules forbid small pets? Are you in the same age bracket as the current residents? Is it a couple oriented building, or singles only? What are the noise restrictions? Can hanging baskets and lawn chairs decorate your balcony? How many parking stalls per unit? Can you perform minor car repairs?