If you are considering an investment in real estate, the process can be extremely intimidating. You should move very carefully. If you make the right decision, you have either a property that will bring you a profit, or you have the dream home where you can live for the rest of your life. Use these tips to help make the best decision.
When you have a good realtor it makes all the difference in the world. The right realtor knows the best home inspectors and the best home warranty packages. He or she can tell you which homes will be soon going up for sale — in short they have the best connections to help you with all of the little details of home buying. They probably even know the best lenders to help get you started with that mortgage loan. A great realtor earns his or her commission from day one.
The pre-approval process provides you a with lot of flexibility as you prepare to make your home purchase. If you get pre-approved before you start shopping for a house, you know how much you can afford to spend. This can save you a lot of stress down the line because you don’t have to get into arguments about what you qualify for. Also, sellers’ agents will work more closely with your agent if you have already been pre-approved — that’s because they know you mean business.
Too many people purchase houses that are more than they can afford — and end up being “house poor” as a result. When your payments stretch your budget too tightly each month you end up not being able to do the improvements to your home that you want to do. Also, it may mean you are unable to buy a car, take a fun vacation, or even save for your kids’ college funds. Be smart with your mortgage and don’t bite off more than you can chew.
Even if you see a wonderful house that you love, make sure that you research the neighborhood before you run out and sign a contract. You may end up having the nicest house in a shoddy neighborhood. This is particularly true when you are buying a house in a distant city. Look at the schools, the crime rate, and the comparable transactions to see if buying that house makes sense for you.
There’s nothing worse than signing a 30-year contract, moving into your new house, and finding out that you have $15,000 of foundation repairs to make — or that cockroaches have infested the entire crawl space between your kitchen and laundry room. These repairs should appear on the report of a reputable home inspector. This is why having the right realtor is so important.
If you are careful with your home purchase now, you will save yourself thousands of headaches, and a great deal of money, in the future. Follow these simple steps that will help make your home buying experience as simple as possible.