Home Buying Tips
1. Straighten Out Your Finances
Credit reports are a continuing look at how you manage your finances. Before applying for a mortgage, you’ll need to know exactly what your credit reports say about your financial history since the credit reports are an important factor in the approval process for a mortgage and they also determine the interest rate and other loan conditions that a lender will offer you. Also, errors are common in credit reports so don’t be surprised at what you’ll see.
2. Familiarize Yourself with the Mortgage Industry
A crucial part to your home buying success is finding the right loan and lender. You’ll need to determine what loan and lender will best fit your needs. It is also a good idea to have some background knowledge about the loan process before you speak with a lender.
3. Get Yourself Pre-Approved for a Mortgage
Getting pre-approved helps your home buying process. By speaking with a lender, you can find out how much you can afford on a house. Getting pre-approved also helps in other ways. For instance, an offer to a seller that is accompanied by a letter from the buyer’s bank stating the buyer is pre-approved for a mortgage in the amount of the offer will always be more attractive to a seller than an offer that has no supporting documents.
4. Determine What Your Needs and Wants are
You can help your home buying process by familiarizing yourself with the real estate market you’re targeting and narrowing down your wants and needs. Doing this before you start looking at houses will help the process go smoother. Buying a home shouldn’t be difficult, even if your funds are limited.
5. Familiarize Yourself with Real Estate Agents
Before contacting a real estate agent, it is important to understand the duties and loyalties of a real estate agent. Real estate agents represent buyers, sellers, or both the buyer and seller. In some states, real estate agents can operate as neutral facilitators for the buyer or seller.
6. Begin Looking for a House
Your real estate agent will provide listing sheets for you to look at. In addition to what your real estate agent gives you, looking in the newspaper, for sale magazines, and on the internet are good ways to see what else is available. Driving out to the homes to preview the neighborhoods and area wouldn’t be a bad idea either.
7. Take Care of Pre-Offer Duties
Buying a house involves looking at its structure and its features but these are not the only things needed to be done. There are many other topics just as important to your home purchase such as resale potential, deed restrictions, etc… Your decision to buy or not can be based on these pre-offer duties.
8. Prepare to Make an Offer on the House
There isn’t a universal set of instructions that can cover all the differences in real estate laws and customs that exist. The procedures of making an offer and the specific possibilities that go along with it depend on your location. Be sure to cover all your bases by speaking with your real estate agent.
9. Take Care of Home Inspections and Any Additional Tests
For some states, home inspections are done before the final purchase contract is signed. In other states, inspections are done after an offer is finalized. Despite when you have the inspections or tests done, it’s very important to decide which inspections and tests you want to be done on the house. Speak with your real estate agent or inspector/tester to find out when inspections and tests should be held and if there are any additional types of inspections and tests that are important for that specific area.
10. Prepare for Closing
As the closing date approaches, every person involved in your home purchase should check its progress daily. Keeping tabs on everything will allow you to know of any problems that arise so they can be corrected immediately so that the final steps of the process can go smoothly as well.
These tips are a general guide for home buying. Remember to ask questions if you have any. Never hesitate to ask questions. Ask as many questions as necessary to help you understand the entire home buying process. Ask whomever you feel can answer your questions whether it is the bank, a real estate agent, etc… You are about to make a long term commitment and are going to spend a very large amount of money. Staying informed and understanding what’s going on every step of the way well make you feel much better about everything.