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Buying a Home

For most Australians, the price of their house determines their financial situation. In a boom period, homeowners are rich with equity; but during lean years, it can be a real struggle. As a buyer, you'll want to consider whether we're in a boom or bust period. If we're in a boom period, the danger is that you will pay too much for the house. Even if you plan to stay in the house for a long time, this can be a problem, since a burst bubble could mean that you're paying off a $300,000 mortgage on property that's now worth half that amount. By contrast, you may be buying during lean times.

While money is typically harder to come by in those times, a buyer can make a huge profit because he'll be buying well below value. The solution is to know the state of the national housing market and plan accordingly.

That may mean buying a less expensive house, but it can make the difference between keeping that house and losing it. Find competitive sale prices for the same type of house in the area you want to live in. No two houses are exactly alike (unless you're looking at a planned community), but knowing the prices of comparable houses will always help you determine if you're paying a fair price.

You can find comparable prices for houses by using a real estate agent. Or, you can do your own research, either by talking to people in the area and attending open houses, or using an online search engine such as HomeGain.com.

These search engines are often free at first, which means that the website is trying to sell you on paying for information or using one of its real estate agents. However, with some effort, you can use these services to find comparables in your neighborhood. The real cost of a house is seldom in the price tag.

The better your mortgage, the more you'll save. There are a multitude of lenders to choose from, but the only deciding factor will be the rate. Don't assume that all quotes are the same. You can find the mortgage yourself using websites like LendingTree.com. But just because you've eliminated the broker, doesn't mean that you've saved money.

In fact, you may have lost money. A broker can and often will help you find the best rate. Some brokers charge a fee, but there is no reason to use those brokers because competition is fierce. A good broker will be paid indirectly out of the loan, or receive a commission from the lender. The incentive for them to find you the best loan is that there are a lot of brokers to choose from. The best game plan is to shop for brokers and get as many quotes as you can.

From there, tell a broker with a low quote about your lowest quote and see if he can do better. The above information is from: http://www.askmen.com - check them out - a good resourse.