For Arlan

Arlan posed a couple of questions in an effort to help with my blogger block.

He asked "what's the best way NOT to buy a house? What pitfalls should a new home buyer try to avoid?

While I have an interest in Real Estate, I am not an expert. But, I do know a little about credit and the one piece of advice I would have is to make sure your credit is clean before applying for a mortgage. If you know you have some past due accounts or collections, then get those taken care of because your credit score will dictate what rate you are charged. Typically, if you can have a credit score over 700 you will qualify for the best rate and, a difference of just 50 basis points (.5%) can mean you might pay $10K to $20K more in interest over the life of the loan.

Don't rush into a house purchase until you know your credit is in line, you have enough down payment and you can afford all the added expenses of home ownership. You need to be prepared to fix a broken air conditioner, a garage door that won't go down, or any number of unexpected expenses.

Rushing into a home purchase can be very costly.