The process of buying a new home can be a stressful undertaking on top of the tasks of everyday life. While you may want to quickly get the process over and done with, accounting for these ten secrets can save you thousands in mistakes.
10- Refrain from making any large purchases, moving money around, or taking any big chances with your credit profile three to six months before buying a home. No lender will want to see a last minute financial risk before you purchase a home and it will prevent you from getting the best possible loan.
9- Be sure to get pre-approved for your home loan. Being pre-qualified and pre-approved are two very different conditions. Anyone can be pre-qualified for a loan, but being pre-approved means a lender has thoroughly analyzed your financial information, informed you about how much you can afford and how much they can lend to you.
8- Avoid a border dispute. A complete survey done on your property will let you know exactly what it is you’re buying. Get an accurate map drawn up of your property, because your property tax is likely based on just how much you have.
7- Don’t try to time the market! Real estate is a constant, fluctuating cycle. Waiting for the perfect time to buy a home is the easiest way to miss out.
6- Bigger does not mean better. Remember that the largest house will only appeal to a very small audience, and you do not want to limit potential buyers when it’s time to re-sell. Your home (even with its 8-car garage) will only go up in value as much as the other homes around you.
5- Avoid any sleeper costs. Sleeper costs make all the difference between renting and owning a home. While most people just focus on their monthly mortgage payment, there’s also the expense of property taxes, utilities, homeowner-association dues, and maintenance costs to consider.
4- There’s no dating in buying a home. Don’t let a new home sweep you off your feet. Relying on your financial instincts will allow you to recognize a good value for a good home.
3- Give your house a physical. You wouldn’t buy a car without looking under the hood would you? The same principle goes for a new home. The cost of hiring a home inspector could save you the mistake of losing thousands in repairs. Any information they provide about necessary improvements for the home can also be a great bargaining tool on the negation table.
2- The secret science of bidding. Base your opening bid on what you can realistically afford, and what you really believe the property is worth. Don’t offend the seller; be sure to make a fair and reasonable opening bid. Observe what other homes in the neighborhood have sold for, and aim for an average price per square foot.
1-Take a look around the neighborhood! Get the lay of the land before you buy. So many buyers have their homeowner dreams shattered because they did not realize what kind of block they really bought into. Route your regular commute through the neighborhood so that you can assess what you will have to deal with on a daily basis.