10 Secrets to Buying a Home
Home Buying Secret #10: Don’t Make any Sudden Financial Movements
Lenders want to see that the person they are about to give a loan to is reliable and stable. Taking on sudden debt can make securing a loan more difficult. Consider taking it easy on your bank accounts if you are looking to buy a house in the near future.
Home Buying Secret #9: Get Pre-Approved for Your Home Loan
Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. This can save you a lot of time shopping for homes outside of your price range. It can also provide you an advantage in negotiations if the other bidders haven’t been pre-approved.
Home Buying Secret #8: Get a Survey
Knowing the property lines on the home you want to purchase can make a world of difference, not to mention avoid some serious debates later. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up.
Home Buying Secret #7: Don’t try to Predict the Market
The real estate market is difficult to predict, so don’t try too hard to gamble on the market. The best time to buy is when you find your perfect house and you can afford it.
Home Buying Secret #6: Avoid the Biggest House
It’s an American approach to go for the biggest most expensive product on the market but try your hardest to resist this reflex. The biggest and most expensive house on the market will be affected by the relatively lower prices of the houses in the neighborhood and appreciation will be limited. In other words, the owner of that property will be working hard to raise everyone else’s value so that the biggest home in the neighborhood will raise in value as well.
Home Buying Secret #5: Be Aware of Extra Fees
New homeowners can get blind sided by extra fees they never had to worry about before. Be warned, no matter how new the house, repairs and maintenance will be costs you need to consider.
Home Buying Secret #4: Buy with Your Brain Not Your Heart
Falling in love with a house for sale can be a lot of fun but it can quickly get out of hand. Buy with your brain and if you can’t, hire someone to represent you and advise you on the value rather than the emotion.
Home Buying Secret #3: Get it Inspected First
It’ll cost about $200 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. This information doesn’t have to ruin your dream home though, you can use this information during the negotiations to get money back.
Home Buying Secret #2: How to Bid
A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood. Not all market conditions are the same and they can fluctuate. Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
Home Buying Secret #1: Tour the Neighborhood
Before you decide on a house, try deciding on a neighborhood. Walking up and down the neighborhood streets in the morning or afternoon can give you a great idea of the type of community it is. You will also get a chance to see if there are any major traffic issues or the convenience of nearby shops and restaurants. Remember, it’s relatively easy to make changes to the house you buy when compared to making changes to the neighborhood you moved into.