Looking to buy a home? Here are five essential tips for
making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. Obtain
copies of your credit report. Make sure the facts are correct, and fix any
problems you find. Next, find a suitable lender and get pre-approved for a
loan. This will put you in a better position to make a serious offer when you
do find the right house.
Find a house you can afford.
As with engagement rings, there’s a general rule of thumb
when it comes to buying a home: two-and-a-half times your annual salary. There
are also a number of tools and calculators online that can help you understand
how your income, debt, and expenses affect what you can afford. Don’t forget,
too, that there are lots of considerations beyond the sticker price, including
property taxes, energy costs, etc.
Hire a professional.
While the Internet gives buyers unprecedented access to home
listings and resources, many aspects of the buying process require a level of
expertise you can’t pick up from surfing the web. That’s why you’re better off
using a professional agent than going it alone. If possible, recruit an
exclusive buyer agent, who will have your interests at heart and can help you
with strategies during the bidding process.
Do your homework.
Before making a bid, do some research to determine the state
of the market at large. Is it more favorable for sellers or buyers? Next, look
at sales trends of similar homes in the area or neighborhood. Look at prices
for the last few months. Come up with an asking price that’s competitive, but
also realistic. Otherwise, you may end up ticking off your seller.
Think long term.
Obviously, you shouldn’t buy unless you’re sure you’ll be
staying put for at least a few years. Beyond that, you should buy in a
neighborhood with good schools. Whether you have children or not, this will
have an impact on your new home’s resale value down the line. When it comes to
the house itself, you should hire your own home inspector, who can point out
potential problems that could require costly repairs in the future.
