What type of concerns should a new home buyer have?

If your mom is a realtor than she probably knows more than most of us but since you are asking us I’ll toss in my $.02..

One rule of thumb that makes sense to me is not to buy a house that you plan on staying in less than 7 years. If you will stay less than 7 years the costs associated with buying, financing, and selling will probably eat up any equity and tax savings you earn so you are probably better renting for shorter stays. Of course 7 years is a rule of thumb; you can run some numbers looking at the costs and benefits of owning; the break even point might come sooner or later for you personally. e.g. someone in the top tax bracket will get more benefit from the deduction for interest and points than someone with a more modest income..

There is a lot of truth in the saying that the three most important things in real estate are location, location, and location. Homes in desirable locations are likely to appreciate more in an up market and depreciate less in a down one.

Be realistic about what you can afford. Don’t assume that just because you can get a loan you can afford a house. I know a couple who make about $160/year who are looking for a house. Their bank pre-qualified them for a loan up to $550K. IMHO they would be nuts to buy that much house.

It is a scary time to buy becuase of the mortage crisis and the shaky economy. I’ve never been a believer in trying to time the market. If now is the right time to buy for you than go for it instead of waiting and hoping to get a better deal in the future. Prices and rates are unpredictable and could go either way. Every time I’ve tried to time the real estate or stock market it did the opposite of what all the “experts” predicted and I lost money.