Home Buying Tips

    As time passes before you know it you will be in the process of buying your first or a new home.  Though buying a house takes time, why not properly manage your experience by starting early.

    Here are a few tips in making the journey smooth, clear, and unforgettable.

    Have a list of expectations.  Before looking for your dream home create a checklist of wishes, wants, and got-to-have.  This insures that you don’t leave any stones unturned and expectations of your new house tarnished.  The worst thing that could possibly happen is living with regrets over the years in what could have been avoided if you only created a list.

    Focus on trade-offs.  Not everyone can decide or afford certain items for their home.  Create a numbered priorities list in order to judge what your willing to compensate.  The most common trade-offs that you will discover is location versus space.  You can find a small home in a great location but at the same time find a larger house in a less desirable part of town for the same price.

    Look into the market conditions.  If houses in your area cannot be kept on the market longer then a week then this favors the sellers.  On the other hand, if homes take long then a month to sell, the market can be considered buyer-friendly.  Timing is everything, so don’t waste it if its a sellers market.  You could easily get outbid if you are not on top of things.

    Open your eyes to the whole valuation of the area and your house.  Besides just looking at the features that make your new home great, make sure you are in a good school district, not on a busy street, or not nearby a bunch of houses under foreclosure or sale.  All of these factors could affect the value of your house.

    Is the timing right for you? Make a timeline to see if you will have the free time available to dedicate to looking and buying a house. Do you have the financials, the help, or are in the right state of mind to go through this process? Many people make the mistake of paying rent for their new house over taking a down payment and qualifying for a mortgage.

    Understand your home loan.  Know what you are eligible for, the type, the fine print, and the rate.  Have your financial documents ready before contacting your lender.  Only take out a loan you feel comfortable taking.

    Prepare a down payment.  Never go into a situation where you can never put any money down before taking out a loan.  If you cannot have any equity return on your purchase why do you think you can pay a monthly mortgage.  It is suggested to put at least a 20% down worth of the value of the house.

    Homeowner’s insurance.  There’s a plan for everyone so make sure you do your research.  The biggest deal you can receive will be through your auto insurance.  Get a quote from the same company and ask them if they would reduce the price if they did a bundle deal.

    Look and read all of the small details.  During inspection try to pick up on everything.  You don’t want to realize down the road you paid for something that was broken.  Read your HOA documents carefully.  Make sure that there are no “secret” home owners association fees that you don’t know about.  If these fees are too expensive it could affect your ability or wanting to buy a certain house.

    Consult a professional.  Having a realtor that represents all of your best interests is extremely important.  You don’t want to have someone you don’t like lead you down the path of a wrong home. Some things to consider when choosing your realtor: how long have they been an agent,  are there any complaints of them on file,  or how well do they know the area.

     

    Source: http://www.mydomaine.com/buying-first-home

     

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