ABC's of Home Buying

When Irene and Riley Watkins decided to build a new home in Durham County, they scoured magazines to find the ideal floor plan and decor, such as carpet, wall colors and kitchen countertops.

"We're hoping to be in our new home by Christmas, and we want everything to go smoothly while it's being built," said Irene Watkins, a staff specialist with Facilities Management.

Her husband, Riley Watkins, a construction worker, knows enough about the homebuilding industry to make sure that the 2,150-square-foot house is constructed well. Yet, the couple wasn't sure where to turn for advice on the most important part of the puzzle -- financing their dream home.

"Building a house is a big decision, and we don't want to make any mistakes, especially about the mortgage," Irene Watkins said. "Making sure we do the money part right is crucial. That's probably our biggest worry right now."

The Watkins say their concerns about adjustable mortgage rates, private mortgage insurance and other aspects of home-buying have been eased after attending a free home-buying seminar with the Duke University Federal Credit Union.

Home-Buying Seminars

Sept. 10, 6:30- 8 p.m. Teer House

Sept. 25, 12:30-1:30 p.m. Searle Center

For other dates or to register online click here and select "seminar sign-up" or call 684-6704, ext. 365.

During the June seminar, Scott Baker, a mortgage lending officer, provided pointers for about a dozen members of the Duke community.

"The housing market and interest rates are volatile right now, which is why it is more important than ever to know all the facts," Baker told participants. "The key thing to remember is that you have to do your homework before buying a home because the only person who is going to look out for your best interest is you."

Quick Tips

1. Check realtor or lender credentials, ask for references. "Keep in mind, a realtor who represents the seller will have the seller's interest in mind more than your interest," said Scott Baker of the Duke Federal Credit Union. Locate a buyer's agent to help negotiate.

2. Set a realistic budget, calculate the monthly mortgage. A mortgage calculator and other resources are available here.

3. Request a free credit report, implement steps to improve your credit score. Close old credit card accounts before applying for a mortgage.

4. Save money, do your homework. Talk to several lenders, compare costs and interest rates and negotiate a better deal.

5. Get a home inspection; make your offer contingent on it.