Tag: home buyer

Buying a new home is one of the most important (and daunting) processes that many of us will go through. If you are new to homeownership, it can seem even more challenging as you may not know what to do to get the ball rolling on making a purchase.

Here are ten actions you need to complete before you buy your next home:

1. Determine your budget — When you go to a mortgage lender, they will tell you exactly how much “house” you qualify for. However, just because you qualify, it does not mean you need to jump into a mortgage of that size. Instead, sit down and do a tight budget that shows you exactly how much you can plan on spending each month. Then, use a budget calculator to “reverse engineer” how much you can afford to take on with your loan.

2. Get pre-approved for your loan — Now that you know how much you want to take out in your home loan, go to different lenders, and get pre-approved for the loan. Don’t be afraid to negotiate with these lenders. If one offers a low interest rate, then see if others are willing to get your business by beating that rate. But do this before you start shopping for a house as this will save a lot of time later on.

3. Read your loan paperwork CAREFULLY — One of the problems with the “housing bubble” was that people were buying homes they really couldn’t afford. The terms looked great, but they missed hidden costs such as balloon payments that made them go under. Be sure that you know all of the details of the loan and you agree with all of those terms before you sign anything.

4. Save all of your money — One of the biggest obstacles to buying a home is paying so much money upfront. However, the more money you can put down on the house, the less you will be financing and paying interest on. So, it’s important to use as much of your savings as possible to get the total down.

5. Make a list of must-haves — Once you know what your budget is, talk to a real estate agent about finding a house in your price range. Create a list of items you absolutely must have so that your agent won’t waste your time looking at other options.

6. Do more than one visit — Although the current situation may not allow for large visits such as open houses, you still need to do a walk-through of the home. If you think it’s one that you could be interested in, ask for another walk-through at a different time of day. Traffic patterns or neighborhood noise may be a problem that you didn’t notice on your first trip.

7. Don’t get pressured — If you’re unsure of a property, some real estate agents will push you with the “I’ve had lots of people looking at this property” line. This may be true. But don’t let yourself be pressured into making a decision. This is something you will be living with for years.

8. Negotiate the price — Don’t offer them their exact asking price. Go a little lower and see if there is any wiggle room in the price. All they can do is say no and you can still make a counteroffer.

9. Get an inspection — Before you sign anything, it is imperative that you get a thorough home inspection to check everything from the plumbing and electrical systems to the foundation. If something is wrong here, don’t be afraid to walk away from the deal.

10. Get a good mover — Once you’ve made your purchase, it’s time to move in. Be sure to look for a reputable moving company that is licensed and bonded. Hire them right away so that you can move in when you want without a hassle.

Buying a home is a big step but it doesn’t have to be a scary one. Make sure to follow these steps and you will be able to get the best deal so you can move quickly into the home of your dreams.

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