Tips and Tricks to Take the Guesswork Out of Home Buying
Monday Jan 09th, 2023
A lot goes into purchasing a new property, and for many people, it will be the most significant investment they ever make. Because of the sheer cost of home ownership, being ready from all avenues is the best way to make the entire process seamless and stress-free. If you’re ready to jump into the real estate market or up or downsize your current property, there are things you should know before diving into the deep end.
When you’re buying your first home, there are a few hoops you must jump through before picking one and moving in. Even before that, however, you’ll need to make sure that you look good on paper and have the funds to support such a large investment. This means staying on top of your credit by paying bills on time, lowering your debt, and saving as much as possible for a down payment.
After you’ve readied all of that, you must get pre-approval. You want to meet with a mortgage provider before considering listings because you need to know how much you can afford. When you have that baseline, you can get into things by looking for a reputable agent and exploring your mortgage options. Many providers are available, so you don’t have to pick the first one you meet with. Shop around a bit to find what option works best for you.
Lastly, don’t forget about closing costs. It may be tempting to put all your money into a down payment to get the lowest possible mortgage, but if you don’t have the extra leftover for closing costs, the deal will fall through, and you’ll lose out on the house you love.
Prepping to Buy
Before you get to the house hunting and signing off on a mortgage loan, you want to really think about the commitment. When prepping to buy, you want to ask yourself these five questions:
· Can I live in this home and city for at least five years?
· Do I have extra savings to cover three months of expenses?
· Is my income stable?
· Can I get pre-approval?
· Do I know all the costs associated with buying a house?
If you can’t answer these questions, it may be better to take a step back. You can also ask your REALTOR®️ for a list of possible expenses so that you’re fully up to speed with everything it takes.
Selling the Old and Buying the New
If you’re on your second, third, or 100th house, you’ll also need to be aware of your options. Will you sell and put the money towards a new home or rent it out and keep it as an investment property?
Many people also turn to renovations to get top dollar for their old home but make sure you discuss any upgrades with your real estate agent. They will be able to tell you what’s worth it and what might be worth leaving alone. Your REALTOR®️ will also be able to tell you about the sale/purchase agreements and likely warn you to stay away from purchases conditional on the sale of your home.
Lastly, you’ll want to keep your credit in good standing when reapplying for a new mortgage loan by avoiding large purchases and rectifying any issues on your credit report.
By extensively preparing yourself to purchase a new home, you will be more than ready when the time comes.