Now it’s time to find that perfect home. Start by checking out potential neighborhoods. An old saying in real estate notes that there are three factors to consider when shopping for a home: location, location, location. This emphasis has as much to do with resale value as with what is right for your family. Before you settle on any area, you will want to know about the following:

• Local schools. Even if you do not have school-age children, the quality of schools can be an important factor when you resell.
• Municipal services. Is there city water, sewer, transportation, recreation, trash removal?
• Commuting times and public transportation alternatives.
• Proximity to religious institutions, community colleges, entertainment, supermarkets.
• Type of neighborhood.

Is there a mixture of families of different ages? Seeing a number of swing sets in the neighborhood might appeal to growing families but can serve as a warning flag to buyers anticipating quiet weekends.

• Property taxes, common charges, co-op fees, assessments.

Next, to help narrow your search further, draw up a list of the things you must have in a home and a list of the things you'd like to have. In choosing a new home, don't let your emotions take over. Here are some of the things to check in each home you're considering:

• Style, age and condition of home
• Exterior maintenance required
• Number of bedrooms and baths
• Average utility bills
• Kitchen layout and appliances (if included)
• Basement or attic for storage
• Garage
• Yard
• Air conditioning
• Environmental concerns (radon, lead paint, etc.)

If you've done your homework by reading the real estate section of your newspaper, going to open houses or retaining the services of an agent, you should have a feel for average selling prices relative to the size of a home and its neighborhood. You want to avoid the danger of overpaying; be especially wary of homes that have been on the market more than six months.

When you have found the home of your dreams, make an offer. If the seller accepts your offer, it's time to arrange financing. Fortunately, because you did your financial homework in advance, you won't be faced with the disappointment of finding out you can't afford your first choice.