And since the interest rate on the loan affects your monthly payment, you have to consider that as well. With it, you'll have a pretty good idea of the selling price you can afford, at a particular interest rate, given your monthly income. After discussing the kind of home you want, the areas you're interested in, and the various features you're looking for, an agent can show you those places within your price range. You may not be able to find a 3-bedroom house on the north side of town with a fireplace and finished basement just by driving through neighborhoods. But if there's one on the market, your agent probably can.
Most people only buy a house once or twice in their lives.
Real estate agents do it every day. They'll help you decide between mortgages, handle the seemingly endless paperwork, and be there to answer any questions you may have. Just remember, the agent's commission is usually paid by the seller, not the buyer. Which means when it comes to negotiating the sales price, the agent is normally working for the seller. Before making what could possibly be the biggest investment of your life, learn as much as you can about the home buying process, including some terms you may not be familiar with.