Determine Your Budget
This may sound cliche, but it's one of the most important things to do when buying a home. Know your financial limits and set a budget before you start searching for a home.
Be HONEST about your budget. I tell my clients all the time, just because a bank approves you for a million dollar home doesn't mean you have to get a for the full approval amount. No matter how much the bank approves you for, only you (and your co borrower if applicable) truly know how much house you can afford comfortably. Be sure to include all your expenses including your savings and money you will spend on things like traveling, hanging out, partying etc.
Making sure you include everything you need to when it comes to your expenses because as we all know, things not only come up when we least expect it, but most times when we don't have the funds to handle them.
Remember: The goal isn't only getting the house, but keeping it.
Find the Right Location
As the saying goes... Location, location, location and it works the same for choosing the right location for your home.
Research the areas you're interested in and look in a neighborhood that fits your needs and lifestyle. A good rule of thumb: visit the neighborhood often on different days and different times of day, especially on the weekend. Stop and talk to the residents and ask them how's the neighborhood. Try to speak to those who seem like they've been in the area a while. This would be a good time to talk to that nosy neighbor.
Know Your Needs and Wants
During my consultation with potential homebuyers, I always have them create a list of their "must-haves" and their "nice to haves" and this goes for both the interior and exterior of the home. This will help you narrow down your your search.
On your "must-haves" list, there will be things that your home MUST HAVE or it's a dealbreaker for you. For example, walk-in-closet, large kitchen with an island, fenced yard, two-car garage. These are things your home must have in order for it to be the right home for you. Must-haves are things your home need in order to accommodate you and your family as well.
As for your "nice to have list", these are the things you would like to have come with your home, but aren't necessarily a dealbreaker.
Getting things down in writing helps you see them clearly when you walk into a home. Not only does it make it easier for you to identify the perfect home for you and your family, but it also helps me when searching for homes to show you as well.
Get Pre-Approved for a Mortgage
Contrary to popular belief, this is the VERY FIRST step you should be doing as a potential homebuyer, getting pre approved for a mortgage. Most people think they need to find a real estate agent first, but when you contact an agent, the first thing they're going to ask you is if you're pre-approved.
Having a pre approval letter from a lender gives you an advantage over other buyers and show sellers you are serious. Furthermore, most agents won't even bother showing a potential client any houses without a pre approval because it's pretty much pointless. There's no need in showing you homes that you may not qualify for or homes that you're underqualified for.
Work with a Real Estate Agent
Most people don't like working with real estate agents because they feel they can find a home on their own and this is very true, but working with a real estate agent has its benefits.
A professional agent can help you navigate through the buying process, negotiate with sellers, and find the best deals . Agents also have access to off market homes as well as access to connect with other agents who are looking for buyers for their sellers and give you first dips at a home that may be a perfect fit before it hits the market.
Inspect the Home
DO NOT SKIP this step. Hire a professional home inspector to thoroughly check the property for any potential red flags and problems. The last thing you want to do is buy a "money pit" and have to start off fixing problems the moment you move into the home even before your first mortgage payment is due.
If you've never seen the movie "The Money Pit" you might want to watch it and I bet you'll make sure you get the home inspected.
Consider the Resale Value
Even if you plan to live in your home for a long time, it's still important to consider the resale value in case you need to sell in the future.
Sometimes we may not think we're going to move and we'll be in our houses forever, but life circumstances may present us with a reason to have to uproot from our homes. You want to make sure it's good for resale.
Don't Rush the Process
Potential buyers often ask me "when should I buy a house" and the short answer is... When you're ready.
Buying a house is a really huge purchase and you need to make sure you are ready. As I always tell my clients, the goal isn't only just getting the house, but KEEPING the house. Take your time. Work on your credit so you can get the best possible interest rate and reasonable mortgage. Don't let anyone pressure you to purchase a house too quickly and end up in a situation that you can't financially handle.
Do it when it is and feels right to you.
Review the Contract
This is a very important step in the homebuying process and that is to CAREFULLY READ and UNDERSTAND all the terms and conditions of the purchase contract before signing it. If you don't understand anything, ask your real estate agent to clarify. Don't sign anything until you fully understand.
I hope this helps you on your homebuying journey.
As always, happy house hunting!
Comentarios