Do you think you are ready to buy a new house? It’s not as easy as visiting some open houses and flipping through pictures online. Before you take the plunge, consider some of the following questions to guide you through the complex process of buying a home. Buying a home is a huge financial investment. There are a number of things you can do to make the buying process enjoyable and successful.
1. Is this the right time for me to buy?
In addition to considering the current real estate market, think hard about your own situation and lifestyle. Buying a home is one of the largest financial investments you will make. Not only that, but it is also an investment of time. If you are not satisfied with your current job or in your current city of residence, buying a house may not be a good option. You should feel pretty confident that you’ll be comfortable staying there for at least five years, especially if it’s your first time buying a home. Research is very important to know what you want and what is available. It is very important to check with your family and friends.
2. Can I afford it?
It’s true that paying a mortgage is often cheaper than paying rent on a month-to-month basis, but there are many hidden costs. Initially, you may need to put down some cash for a down payment, home inspection, insurance, and other fees. You may also have the burden of paying for moving expenses, painting, and furniture. Turning your new house into a home could eat up some of your weekends. If you don’t have extra funds set aside to handle the surprises of homeownership, you may want to create your savings account first.
3. Do I need a real estate agent?
Probably. Unless you are a real estate agent yourself, you will need someone to represent you and help you through the process. You don’t have to open the phone book and choose the most convenient agent. You are hiring them; therefore, you must interview. It’s important to find an agent you communicate well with and who has experience with your particular needs. Some agents specialize in condos, others can only do mansions. Agents will help you with quotes, loans, and market trends. They also learn about properties before they are listed, which could decrease competition from buyers. By having a real estate agent, you will see more properties and increase your chances of negotiating a good deal.
4. When should I get a loan and where?
Money will always be a factor in your home search. Instead of getting frustrated by all the dollar bill signs, it is recommended that you get pre-approved for a home loan before you begin your search. This will help you outline your starting budget and avoid potential disappointment if you can’t get a big enough loan for the dream home you see. You can get as many preapproved loans as you want, but each one will show up on your credit score, so look no further if you don’t need to. The pre-approved loan is also the gateway to better deals. Some sellers will resist signing the deed if they don’t have some form of proof that you have the finances.
You can find a lender with a mortgage company, online, or through suggestions from your real estate agent.
