Purchasing a home is a big deal. When it comes to making a huge purchase it is best to do as much homework as possible to make the best decision and not end up with buyers remorse. Here we share some home buying tips that are good to know before purchasing a home. 

Tip 10- Play it Safe With Your Savings 

Three to six months before you purchase a new home it is best not to make any other big purchase or move large amounts of money from one account to another. You want your credit profile to be in its best shape. Lenders want to see a reliable and dependable financial profile before they let you borrow large amounts of their money. If you open new credit cards, purchase a car or move your lifetime savings into your checking account it will not look good to a lender.  

Tip 9- Pre-Approval is an Advantage Best little known home buying tips

There is a big difference between pre-qualification on a mortgage and pre-approval. Pre-qualification is offered to almost anyone. If you get pre-approved by a lender it means they have looked at your financial portfolio and given you a number of how much they believe you can afford and how much they would be willing to lend you for the purchase of a home. Pre- approval will save you time from shopping for homes you will not be approved for and allow you to shop around for the best mortgage. Don’t just settle for the first loan you are offered do the homework and find the best terms and interest rates for your finances to stay healthy. Learn about the junk fees, processing fees, and other hidden costs associated with different lenders on every loan this can save you hundreds.  

Read more: Best way to Buy a House

Tip 8- Know Exactly What You are Buying 

Not many buyers do this but it is very beneficial to have a survey conducted of the property you plan to purchase. This will legally determine what exactly it is you are buying. It is important to know exactly where the property lines lie and if there are any property easements. This will save you from potential neighbor disputes and put you in a good position to know just what exactly you will owe in property taxes.  

Tip 7- Don’t Sweat Market Timing 

It is impossible to know exactly what a housing market is going to do in any area. Don't waste significant time trying to figure out when will be the best time to purchase a home. The best time to buy is when you find the perfect home to meet your needs at an affordable price. Real Estate is cyclical and continually going up and down. If you sit around waiting for the prime time to purchase a home at a low price you may just miss out.  

Tip 6- Bigger is Not Always Better 

It is natural to be drawn to the biggest and nicest house for sale in the neighborhood. If you are planning to resale your home then buying the nicest house on the block may not be the best decision. The largest house actually appeals to a smaller audience of buyers and it will limit you when it comes time to resell. The appreciation of a home has a great deal to do with the other homes around it. If you buy the most expensive home it is going to appreciate in value just as much as the home next to it leaving you with less of an equity in the home. Sometimes it's better to buy the worst home if you are willing to work at making it a desirable home because it will appreciate in value more and give you a better profit.  

Tip 5- Be Aware of Sleeper Costs 

One big financial difference between owning a home and renting is sleeper costs. When buying a home most people only focus on the mortgage costs. There are other costs too. Be aware of these  such as property taxes, utilities, home owner association dues, maintenance , and emergency repairs. It is also wise to budget for any possible property tax increases. Sleeper costs can add up quickly and put you in a tight financial spot if not budgeted for before you purchase a home.  

Tip 4- Don’t Get Attached 

Purchasing a home based on emotions is going to leave you disappointed. If you fall in love with a home and let your emotions drive the purchase it is easy to make a financial mistake. Keep a clear head and your feet on the ground. This is an investment so stay calm you don't want to fall in love with a house to find something wrong with it and make a poor decision to buy it anyway. 

Tip 3- Always Get an Inspection 

Don't forgo this important step just to save a few hundred dollars. The cost is small compared to what it could save should an issue with the home be found. An experienced inspector will carefully look at the home,  give you a good idea of the condition,and help you decide if you want to move forward with the home purchase. If issues are found you can come back to the the seller with a bargaining tool for a lower price.  

Tip 2- Make a Good Offer 

Your first offer should consist on two things what you can afford and what you truly believe the home is worth and are willing to pay. You don't want to offer a very low price that ends up offending the seller and ends in an offer denial. It is good to know fair market value compared to the asking price of the home. What you offer should be at or very close to fair market value for the home. If you are finding yourself in a bidding frenzy with other multiple offers bring a memorable number to the table. Odd numbers are more memorable to the seller and may just get you the home.  

Tip 1- Get to Know the Neighborhood 

The home itself is not the only thing you will be living with after a purchase. Many home owners have purchased a home only to not care for the neighborhood later. Visit the home during different times of day to get a feel for what is happening in the neighborhood. Make your commute to work from the home to see if it is a tolerable one. Research the schools. If you are bold enough knock on a few doors and get to know the neighbors a bit.  

Read more: Why You Need to Know the Local Market

The more  homework you do before buying a house the happier you will be with your home purchase once you do find the perfect home for you. A great real estate  agent will be able to help you do the best research possible and is  never too busy for any questions you may have about purchasing a home. We have a team of highly knowledgable agents ready to answer any questions you may have.   

 

Name
Phone 1
Email
Comments