Here's some helpful tips to consider when buying a home, whether you are a first time home buyer, or a long time homeowner looking to move.
1. Be picky, but don’t be unrealistic. There is no perfect home.
2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.
4. Don’t wait to get a loan. Talk to a lender and get pre-qualified for a mortgage before you start looking. Once you sign a contract to buy a home, do not go out and make ANY major purchases. Lenders re-check your credit and finances just before closing to make sure your financial status has not changed.
5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
6. Decide when you could move. Is your home ready to sell? Can you sell your home quickly and still walk away with some equity? When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? Are you looking for a secondary home? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best. But, you should always consider features that will effect the resale of your home. Most people go into buying a home thinking they will be there for a long time. The average length of time in your home is 4 years.
8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals. And, don't forget that you will also be adding taxes, insurance and possible Homeowner's Association Dues to your budget.
9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
10. Get help. Consider hiring a real estate agent as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And usually, buyer’s reps are paid out of the seller’s commission payment. As a home buyer. You want an agent who is going to explain the process as you go, and look out for your interests in what is most likely your biggest investment.
Contact
Vanderhoff Real Estate today and we'll help you to make your dream of home ownership a reality!
