Buying a home is one of the most expensive purchases you will ever make. Often when buyers are looking for a home, they just focus on is what they want, not what is going to make them happy in the long run. If you are a first-time buyer, here are some of the best kept secrets when it comes to buying a home to help you land the perfect place.
Maintain Financial Stability
The closer you are to buying a house the more you want to keep your financial picture the same. Lenders are taking a big risk on you, so you want to prove to them that you are stable, solid, secure and worth the risk. This means not making any large purchases, opening new lines of credit or taking out any new loans before applying for a home loan.
Buy When its Right for You
Too many home buyers rush into buying a home because they become convinced it’s the “right time to buy.” The right time to buy is when you are ready. Being ready to buy a house means saving up enough money for a significant down payment, creating a budget that will tell you what you can afford and what you can’t and finding a house you can live with that fits within your financial means. When you’ve done that, you’re ready to buy.
Know the Boundaries
There are a number of different types of inspections and research you will want to do before buying a house. One of these is getting a survey done so you know exactly where your property ends and someone else’s begins. Remember, once you buy a house, it’s yours. That means if a previous owner put up a fence that is actually on someone else’s property and they suddenly discover it – it becomes your problem, not the previous owner’s.
Learn About Mortgages
Get pre-approved for a home loan, not just pre-qualified. When you’re dealing with loans, just a single point can mean a cost or savings of several thousands of dollars. While you can certainly benefit from hiring a mortgage broker to help you find the best deals, educate yourself on the difference between a good deal and a bad one.
Beware of Hidden Costs
Too often when home buyers budget for buying a home, they fail to account for costs they don’t have when renting. This can include, water and sewage bills, trash collection, property taxes and HOA fees. Make sure you don’t get locked into a mortgage that stretches you to your limit.
Get an Inspection
While many lenders will require you to get an inspection, you should get one whether it’s retired or not. Think of it like taking a used car to a mechanic before buying it.
Bid Wisely
No matter how badly you want a house, don’t make a bid out of your price range. Plan carefully and know what you can and cannot afford. Do your research, figure out what a fair price is and offer it.
Play CIA
Find out everything about the community you’re moving into. Before you sign on the dotted line, find out everything you can about the neighbors, the school systems and the president of the HOA.
