Please Note: In estimating the loan that you will need, you should allow for points if the lender charges them. One point equals one percent of the mortgage. In effect, points are deducted from the amount of money that you actually receive from the lender at the closing, and may require you to seek a somewhat larger loan to meet the purchase price.

You should also allow for closing costs. Some costs (apppraiser fees, termite inspection, possibly surveyor fees, etc.) are required by many lenders. Other mandatory costs (like documentary stamp taxes and title insurance) can vary according to value and other factors. Responsibility for paying those amounts is often divided between buyer and seller according to local custom and/or by agreement between them in the contract.

A wise buyer also employs a home inspector and an attorney. It costs a bit more, but remember: Your new home may well be the most expensive purchase you will ever make. So it pays to be sure!