Investigate Home Loans
It’s a good time to shop for a new home when the inventory is high, and prices and interest rates are low. Yet, if you are a first time homebuyer, the process can be overwhelming. Before you begin looking for a house, meet with a lender to see what you can afford. Be completely honest with the lender, in regards to your financial health. Avoid a lender who tries to talk you into something you can’t afford or encourages you to give false information on your loan application.
If you discover you aren’t financially ready to buy a house, takes steps to improve your financial health, such as raising your credit scores, paying down credit cards and increasing your savings. You may discover you have some work to do on your credit before you can look at houses.
Find a Realtor
In the U.S., a Realtor is a real estate professional who is a member of the National Association of Realtors, a professional organization. Not all real estate sales agents are Realtors. Yet, those who are have agreed to follow a higher code of ethics.
Many prospective homebuyers decide to shop without the assistance of a real estate professional, in spite of the fact this normally costs the buyer nothing, as sellers typically pay the commission. For some reason buyers assume if they call the agent off the sign directly, they will get a better deal.
To get the most out of a Realtor, select one agent who you feel comfortable with, and let her work for you. If you decide to agent hop, and your agent finds out, she probably will stop putting you as top priority, and will instead spend her time looking for another client’s ideal property. After all, the agent only receives compensation if you buy something.
Location, Location, Location
There is a reason for the old real estate cliché “location, location, location.” While the homeowner can renovate a house, it is virtually impossible for a homeowner to renovate the neighborhood.
Another apt real estate cliché is to buy the cottage among the castles, as opposed to the castle among the cottages. Having the best house in the neighborhood isn’t necessarily the best thing, unless you bought the property at what the other houses in the neighborhood were selling for at the time.
Avoid Emotional Home Buying Decisions
Look beyond the obvious, when viewing houses. Don’t be seduced by the selling agent’s attempt to stage the home. The property you just looked at, with the horrid odor, may actually be a better buy than the house you are currently viewing, with the chocolate chip cookies baking in the oven.
Don’t base your purchase on the adorable window coverings or lovely rose bushes, as those are all things that you can add to a property. In your mind, strip away the seller’s personal belongings and decorator touches (both good and bad) and look at the possibilities of the property.
When you do find your ideal house, be sure to check it out during the evening, to see how it looks at night, and take advantage of the inspection period, to thoroughly vet the property. You might also consider purchasing a home warranty, to cover defects occurring during the first year. Before you purchase a home warranty policy, read the policy so you’ll know what you’re actually getting.
Bobbi Holmes - A graduate of California State University, with a Bachelor’s Degree in Communications, and an emphasis in photography, Bobbi Holmes ...
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