The top 10 things you need to know before you buy
- Don’t buy if you’re a mover: If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you at this time in your life. The costs of buying and selling a home, you may have you ending up losing money.
- What’s your credit: Most of us will need to get a mortgage to buy a house, make sure your credit score is strong. A few months before you start house hunting, get copies of your credit report. Make sure it’s correct, and fix any issues you discover. Your score can affect the type of loan and interest you will receive.
- Get Pre Approved so you know what you can really afford: Talk to a lender of your choice and see what loan types, are available for your credit score, to determine your purchasing power.
- The Down Money: There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.
- Study the community and school district: Do your research to determine the community and school district where you are planning to purchase. This is important since your children will be attending the school, and your family will be interacting in the community. If you don’t have children it’s still an important factor since high demand school district tend to sell well when you resell the home in the future
- The Realtor: Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Just remember just because a Realtor is with a big firm does not mean they are experienced. Do your homework. A Realtor can share the nuances of the area and historical data that is not available on the web
- Choose carefully between points and rate: Ask your lender when picking a mortgage; you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say three to five years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run. There is a difference between points and lender origination points.
- Before house hunting make a wish list: Create a list of what you are looking for in a home. Prioritize the list to what a necessary and what is a bonus. Most likely you will never find a home that matches your list perfectly, but you can determine easier if the home fits your needs when the emotions kick in.
- Do your homework before bidding: Your opening bid or offer should be based on the sales trend of similar home sales in the neighborhood. Your Realtor can supply a list of homes recently sold in your area that are comparables and help you determine a good starting offer point based on the condition of the home you wish to make an offer on.
- Hire a home inspector: After the offer is accepted a licensed home inspection should be strongly consider to evaluate the condition of your new home. The lender will not usually require home inspections so it it up to you to make this decision. Regardless of age or visual condition a home inspection is important. You should Interview several “local” home inspectors. The inspector should be licensed, experienced, and a member in good standing of NAHI,( National Association of Home Inspectors)and be a unbiased source. If you suspect a conflict of interest do not select that home inspector. His or her job will be to point out potential problems that could require costly repairs down the road. It is also an excellent time to get to know your new home better and understand how to maintain in after the closing.
Home buying is a big investment “Buy Wise”