3 Things Homebuyers Should Think About Before Signing the Papers

Despite low mortgage rates, an improving labor market and elevated stock prices, consumers are still a bit cautious when it comes to buying a home. A survey by Fannie Mae suggests people, while recognizing conditions are better, just haven't shaken off the shell shock from the Great Recession. So what items do you need to check off the list before buying that first home or trading up? First, how secure is your income? A household is obviously more secure with two breadwinners than one, but examine your job security more closely before taking on the burden of a mortgage payment. Second, figure out how long you want to stay in your home. If you plan to stay in the home for a few decades rather than a few years, you'll be able to withstand market slowdowns. Third, making a large down payment can get you a lower mortgage rate and reduce or eliminate mortgage insurance charges. MainStreet's Scott Gamm reports from New York.