If you have never been house hunting, there are a few things you should consider before you buy your first home. Even if you have, there are sure to be a few things you wish you had thought of before you made that first move. From dealing with a real estate agent to finding a loan, the following is one list you do not want to miss before you make your big move.
Pick you real estate agent wisely. Never let someone guilt you into a real estate agent referral. Yes, you want to be polite, but ultimately, you should feel comfortable around the person who will help you buy your home. It is your decision, not theirs. Shopping for a real estate agent is just as important as shopping for a loan or a home.
Always buy like you are planning to sell. Even if you plan to never move again, you should approach your new home as if you would sell it. No matter how wonderful and unique it is to you, consider if your home is sellable, should the need arise. In today’s world, it is unpredictable if your job will cause you to relocate or if something will happen to cause you to move. Better to be safe than sorry before you are stuck with an extra home loan payment for a home that will not sell.
Check your credit report before contacting your real estate agent. When you meet with your real estate agent, you want to have your home loan information under control by knowing if you quality for a loan, as well as how much money the mortgage company will loan you. Have your loan officer prepare a pre-approval letter for you before you meet with a real estate agent. Your real estate agent will more than likely ask for it when you make an offer, if not at the first meeting. Also, if there are any problems with your credit report now is the time to get them under control. When a person is interested in purchasing of the home, then the availability of the proper funds should be there. Green loan companies are offering the funds without checking the credit score. It is beneficial for the person and all the information a person can see here at the official site.
Keep you home loan amount under 30% of your budget or income. When it comes to qualifying for a loan and previewing homes within your budget, you want to keep the 30% factor in mind. While you might qualify for more, you should not go over that mark. If something were to happen to your income, you could still afford a home loan that was less than half of your monthly salary.
Know your locations. This is especially important if you are scouting homes in different areas. Make sure you find out all that you can about your potential neighborhood before you buy. Don’t be afraid to do a little research. Drive by the area during the day and at night to see what kind of people live in the homes near where yours would be. You may also do a drive by on a week day and a weekend for a more accurate portrayal before you make your big move. Your real estate agent can also give you information on specific cities and neighborhoods.
Get the home inspected, even if it is new. While it would be wonderful for all homes to be in perfect condition, it seems that even a new home can have its faults. Before you buy, hire a home inspector who will do everything from checking the foundation to pulling on the cabinets to make sure that they are correctly attached. Amazingly enough, not all cabinets are completely attached to the wall, so it is good to have that extra set of eyes for your new home before you move into it and the cabinets fall off the wall.
Know your market. There are two types of markets in real estate: a buyer’s market and a seller’s market. If it is a buyer’s market, it means that buyer’s have the luxury of waiting until they find the perfect home to buy it. It also means that a buyer has more control and power over the negotiations, including the price and any additional terms. If it is a seller’s market, then homes are selling faster than they can be listed. Buyers have little say in negotiations and should act quickly on a home if it the one that they want to buy.
Never make a rash decision about your future home. While it is true that you want to act quickly for the perfect home, you should never make a rash decision. Never do something as impulsive as to drive past a home and put an offer on it that same day. This is where you will be living for the next one, five, or fifty years. Go home, make an appointment to view the property (possibly for the second time), and then consider your options before you make the next move.
Beware of the fixer-upper. Sure they sound fun but unless some one else is doing the work be prepared to give up all your free time.In theory, a fixer-upper always has great potential. It has a low purchase price with the hope of an inflated sales price. Or, for anyone with a limited income, a fixer-upper seems like a great idea because they can get a loan for a home of that price. Depending on the level of remodeling needed though, you may not be able to move into the house right after you buy it.
Let your kids have a say. They have to live there too. Although you may not want to drag them along to every home that you see, you should invite them to view the homes once you have narrowed down the list. Ask them for their seal of approval before you buy and you will find the whole move will go a lot smoother.
Be responsible for your part of the deal. Unless your real estate agent asks you otherwise, stay in the loop on the process of the sale. Real estate agents and loan officers might find you annoying, but isn’t it better to know when your termite inspection is (as well as the results of it) and if your loan will fund on time before the day you sign the papers. With so many vendors and outside sources being used for the purchase of a home, there are several places where your purchase can hit a snag.
Be wary of mortgage company referrals from your real estate agent. Confidentiality or not, real estate agents and loan officers talk. This is even more common if they work together on a consistent basis and become familiar with each other. Even if you have nothing to hide, most people like to keep their finances private. Your real estate agent should know how much of a home you qualify for, but they should find out from you.