keep in mind the housing cost (values) also artificially rose due to all this as well so even people who sill can afford the payment may actually be upside down now after home equidy lines with thier home values now finding the true value, it's all screwed up and will take the market to rebound to clear it up.. Keep in mind also for school systems that survive on property taxes the were swimming in cash during this time tho theyed be the last to agree and now values falling so will thier revenue we home school so cuts there don't affect us but a poor school system hurts the community as a whole... for those who can afford it there are some bargins and is the gov still having out 7G to first time buyers. matt you may want to check that That the stimulas my grand kids have been saddled with and I'd just as soon you grab it if it's still offered. Jarhead

 

Definately get the home inspection as other have mentioned...spend a little today, save a ton down the road. Also, get insurance quotes before submitting an offer. Down here in FL, insurance is hell, and you don't want any insurability issues with an older home. It is a buyers market, so make sure that the seller pays all costs(title & closing). In your budget, make sure you have some money set aside for repairs...stuff happens when you get your first home. Also check on if there are any warranties left on the appliances that come with the house. Have the seller purchase a home warranty as part of the deal, not sure the availablity on older homes, but if you can get the seller to spring, go for it. If anything is deficient on the home inspection, seriously consider walking....any reapir that is recommended at inpection will likely cost you 3X that much when all is said and done.

Remember, its all about location...by the least expensive home in the most expensive area you can afford....corner lots are nice as you have fewer direct neighbors...

Ok...that is all I can think of. I worked in real estate until the bust, so I know a bunch of stuff about the closing and mortgage process if you want some unbiased opinions.

 

I work for a home builder (tough times), and one complaint I always voiced to my employers: you keep building more expensive homes with each development, you will suffer eventually. Well, when buyers were able to get mortgages with no matching income -- we sold plenty. Now, of course, sales are down. What's selling are the only moderate homes we did provide. Sorry I was right -- our company has downsized, and is hoping for a Spring recovery. With that in mind, a lot of the home builders in our area have cut the prices on their new homes -- so go that route just to get an idea what's out there in the newly-built market.

If it all possible, after following all the suggestions other posters have given, try to get a house with a decent amount of land. Small houses can be enlarged if there is sufficient land. Houses which overwhelm their lot usually mean expansion is out -- and neighbors who can reach out and touch your home are a reality.