When buying a home, there are many things that must be considered and done in order to be ready to purchase.
The following home buying tips are the most common and the most important to keep in mind as you go through the home buying process.
10 Tips for Buying a Home:
- Establish a Budget and Stick with it.
It is very important to know what your budget is and what you are financially able to spend on the purchase. Be smart and stick to your plan!
- Get Pre-Approved for your Mortgage
Once you officially decide to buy a home, then you have become a serious Buyer. Don’t stop there! Contact a REALTOR® or Real Estate Agent and ask them to refer you to some lenders to get Pre-Approved. Visit your local bank or credit union (where you already have a financial relationship) and ask them to start the Mortgage Pre-Approval process.
- No Life Changes in Career during home buying process
As you go through the home buying process, you will find that your chosen lender asks for a lot of information. This is done for many reasons. They are trying to see your total financial picture. Because of this, it is important that you do not jeopardize your home buying chances by switching employers or resigning from your current employer.
- Get a REALTOR® to represent your interests in the home purchase
A Real Estate Professional will ensure that your interests are protected in the process. How? They will make sure that you become aware of Due diligence periods, inspections, costs associated with the purchase, appraisals, contingencies, and many more.
- Do not get new Credit or Debt during purchase
As you go through the home buying process, you may decide to buy the living room set for the new home or maybe the brand new appliances for the kitchen. Do Not Do This! Do not buy furniture, open new credit accounts, or add any more debt to your credit. Keep in mind the lender has pre-approved you based on your previous financial situation. If you add more debt, you may no longer qualify and be denied the mortgage loan.
- Make an intelligent Offer
Everyone wants to walk away with a deal. However, if you find the perfect house and then decide to low-ball the seller, What do you think his response to your offer will be? Do not risk having your offer ignored or having the seller entertain the other ones instead. Make an intelligent offer based on current market conditions and trends.
- Get Quality inspections on the home
A home inspection will be ordered during the Due Diligence period. If you order it from the “cheapest’ inspection company around, you will get what you pay for. Keep in mind this is the biggest purchase of your life, wouldn’t you want a quality report of what you are buying?
- Do the Final Walk Through
Do not skip the Final Walk Through inspection. Visit the home with your REALTOR® / Real Estate Agent either a couple of days before or the day of the closing. Compare the current condition of the home to all the other times you visited.
- Purchase Owner’s Title Insurance
What is Owner’s Title Insurance? This is an insurance policy protecting you (the Buyer) against any title issues that may include liens, property taxes or anything else that may arise after closing for anything that happened prior to you owning the house.
- Repairs should be done prior to closing
During the Due Diligence period you will more than likely have a home inspection done on the home. This inspection may result in demonstrating that the home is either perfect or that there are quite a number of concerns. If during negotiations it is determined that repairs are needed, you may want to consider doing these before closing, if time permits. Otherwise, consider asking for a sales price reduction or a seller contribution to your closing costs.
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