The market continues to climb regardless of the current pandemic. Home sales have continued to increase over the past few months and interest rates are low. New home sales continue to
Secrets To Buying A Home
Dated: July 24 2018
Little things that we should all consider when purchasing a home.
It may seem simple, you just go look at a house, you like then make an offer Right?
Well! Yes that is the fun part but there are a few things to think about.
Let's take a look and learn...
|1||First Keep your money where it is. Do not make any huge deposits, or purchases and even move money three to six months before your home purchase. You don't want anything to popup in your credit report that will make a bank ask questions. Lenders are quick to ask while they probe into your accounts. They want to see that you are reliable so they may give you the best loan possible. Getting too many credit cards and getting into too much dept like purchasing large ticket items will be a negative effect on your loan-ability. |
Get Pre-Approved. I can't say this enough! Many folks want a realtor to take them home shopping before they even know home much house they can buy. Be sure you know your buying power before you waste your precious time. You may be able to afford more or may be way over your budget.
Two things to know.....Per-qualified and Per-approval.
-Per-qualified is just a few simple question without looking into any financials
-Per-approval is when a lender has looked at your financial information and have actually informed you how much the loan amount will be so you may purchase your home
This per-approval letter is great to have before heading out to look at homes. Its very good to have on hand so it may be submitted with the offer. It shows to sellers that you are a serious buyer and has started the loan process. Also it will give you the opportunity to see closing cost, processing fees, points if any and any other hidden cost.
|3||Getting emotional about a home. You are not dating a home so work on avoiding falling in love with any home and alleviate the stress. You may be making a bad financial decision if you are acting on emotions. Its best to keep you head cool and think what is best for your family and budget. Becoming obsessive is like when you become fixated on a paint color or backyard and not looking at the rest of the home. Stay clam and be wise for a better edge on when its time to negotiate. Study the home and look at the things that can't be changed like structural, location, also if not within your budget to redoing bathroom and kitchens. |
|4||Do not work yourself up to when is the best time to buy and figure out the market. Trying to decipher when is the best time is impossible. The best time to buy is when you have the funds and you have found the home you love and can afford. Real estate goes up then it goes down; It is cyclical. So if you are working on finding the best time you may be missing out on finding your home. Today's prices and interest rates may not come around for years and you will be left paying someone else mortgage via the lease agreement in your monthly payment.|
|5||Stalking the Neighborhood. Yes! Before you decide on a community go at different times of the day and even at night and see how the neighborhood behaves and if it matches what you are looking for. For example do you want an area with lots of kids playing or need a more quite spot for yourself. If its in a new community do the commute to work and back and see how the traffic goes. For the empty nesters you may want to consider school ratings for resale value. |
|6||Do you really need the biggest house on the block with the largest lot. Is this what your family really needs. There is an old saying..."don't buy biggest, buy best on block". When I was first staring out buying homes I made this same mistake. As the story goes when I was looking I found a very cute cozy home and loved it. When I took my husband he said it was nice but preferred a bigger more grand home. So we purchased the bigger home. I regretted it within a few short months because in reality we never used the big front living and dinning room. It was just wasted space and more to clean. Also keep in mind the value of your home in comparison with the rest of the neighborhood. Its a harder sell if too big and not necessarily increasing in value. |
|7||Have you ever heard of the Sleeper Cost? Its the difference between renting and home ownership. Most folks are fixated on the mortgage payment however they need to keep in mind the expenses of property taxes, utilities and homeowners association dues and mortgage/homeowners insurance. Also new homeowners will be looking in repairs down the road and a potentiate for property tax increases. Therefore it is important to budget these in and not max out the loan amount so you have room for extra expenses and not be house-poor (meaning all your money in rapped in the home and you can't even go on a vacation). |
|8||Knowing your property lines are important so a survey is always recommended to avoid potential neighbors disputes. From my experience I have seen a few. One that comes to mind is when a seller sold her home. She found out that her property line was two feet wider than she thought. She would always cut her grass up to a certain point. The buyers then enjoyed the wider space and the neighbors had to just accept it. A good title and lending company will be looking out for it.|
|9||The Bidding War. Sounds scary? Just take a deep breath and focus on two things. What you can afford and what the property is worth. The first bid should be reasonable and fair. Work on not offending the seller. Then go with an odd ball number for your offer it will sound more like a serious offer. A comparison analysis is helpful because you are able to see what other homes in the area with similar homes were sold for. |
|10||The home inspector. They are worth the money you spend. They are trained experience professionals and their sole roll is to provide you with information about the home. With the report in hand you can make an intelligent decision like if you want to proceed or back out or negotiate some items. Good inspectors will ask for the buyers to be present for the opportunity to educate the buyers about their new home plus go over the report verbally which makes it better to understand once you receive the written report. |
So Now that we have gone over some great items.
And you have done your due diligence at your end.
Let's go look at homes and get you in the home that will fit your budget and your family.
I am based in the greater Northwest Austin, TX area and I am determined to be the real estate consultant of choice and have some fun while we are looking for your next home or Lot. Just to share a b....