10 Best-Kept Secrets for Buying a HomeGet the most out of your money with these handy home-buying tips.
Buying secret #10: Keep your money where it is
It's not wise to make any huge purchase or move your money around three to six months before buying a new home. You don't want to take any chances with your credit profile. Lenders need to see that you're reliable and they want a complete paper trail so that they can get you the best loan.
Buying secret #9: Get pre-approved for your home loan
There's a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. getting pre-approved means a lender has looked at all of your financial information and they've let you know how much you can afford and how much they will lend you.
Buying secret #8: Avoid a border dispute
It's absolutely essential to get a survey done on your property so you know exactly what you're buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate drawn up.
Buying secret #7: Don't try to time the market
Don't obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it.
Buying secret #6: Bigger isn't always better
Everyone's drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There's an old adage in real estate that says don't buy the biggest, best house on the block. The large house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell.
Buying secret #5: Avoid sleeper costs
The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner -associations dues.
Buying secret #4: You're buying a house - not dating it
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There's a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you're getting a great house for a good value.
Buying secret #3: Give your house a physical
Would you buy a car without checking under the hood? Of course you wouldn't. Hire a home inspector. It'll cost about $400 but could end up saving you thousands. A home inspector's sole responsibility is to provide you with information on the homes overall structure, codes and potential areas not seen by the untrained eye.
Buying secret #2: The secret science of bidding
Your opening bid should be based on two things: what you can afford (because you don't want to outbid yourself), and what you really believe the property is worth. your Realtor can help you with this decision. Make your opening bid something that's fair and reasonable and isn't going to totally offend the seller. You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer.
Buying secret #1: Stalk the neighborhood
Before you buy, get the lay of the land - drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasn't for them. Find out how far it is to the nearest grocery store and other services. Even if you don't have kids, research the schools because it affects the value of your home in a very big way.
source: www.hgtv.com
