5 essential tips for making the home buying process as smooth as possible
Are you looking to buy a home? Maybe you are tired of rising rent and want a fixed monthly payment you can count on for years to come. Or maybe you want more control over the house projects you can do, so you can paint the walls whatever color your heart desires. There are numerous reasons that home ownership might be appealing to you. But regardless you feel ready for this new responsibility.
Home ownership comes with a lot of perks, but it also has its challenges. And the first hurdle you have to jump is actually buying the house. That’s why this article will share five essential tips for making the home buying process as smooth as possible. So you can pick up your paint brush and get to enjoying more of the home owning perks.
Tip #1: Get your finances in order
First, you need to get you finances in order. Start by getting a full picture of your credit. Obtain copies of your credit report. This report is a detailed record of your past use of credit. NerdWallet has a great step-by-step article on how you can obtain your credit report by visiting AnnualCreditReport.com. Make sure the facts are correct and fix any problems you find. Things like paying your bills on time, eliminating excess debt, and using a credit card responsibly are a few ways to improve your credit. You’ll want good credit to move forward in the home buying process.
Next, find a suitable lender and get pre-approved for a loan. This step will allow you to know what price range of homes you should be looking at. And this will make you a serious contender when putting in an offer for a house. If you are unsure of where or how to find a lender your real estate agent can connect you with a local mortgage officer. Or there are a number national mortgage options as well. But there are many benefits of working with a local lender because they will be more knowledgable for the market they serve.
Tip #2: Find a house you can afford
It is always important to budget appropriately when buying a home. Just because you are approved for a certain amount doesn’t mean you have to spend it all. And in most cases it is wise not to borrow the max amount. You don’t want to become house poor. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford.
Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, house insurance, and more. Make sure you take all the factors into consideration before settling on the price range of your new home.
Tip #3: Use a professional
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. Your agent will have your interests at heart and can help you with strategies in all steps of the process, especially when it comes to contract negotiations.
While becoming a home owner is great, it can also be a stressful process. This is typically the largest purchase a person ever makes. So, having an expert guide on what can be quite a wild and emotional ride is an invaluable asset.
Tip #4: Do your homework
Before submitting a contract, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Look at sales trends of similar homes in the area or neighborhood you are wanting to settle in. Check out the prices for the last few months. Your agent can help you with gathering all this local market data.
All of this local market data, along with the expertise of your agent will help aid in submitting a contract with a price that is competitive and realistic. This will give you the best chance of winning the bid and becoming a home owner.
Tip #5: Think long-term
Home ownership is not a short term strategy. You shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. And hopefully you will enjoy your new home and be content to stay for a while. Because home values can fluctuate. And the last thing you want is to be unable to move because you are underwater on the house. Of course there are unforeseen circumstances that might lead to a premature move. But if you aren’t planning on making a big geographical change for a few years, buying a home is a smart choice.
Beyond that, you should buy in a neighborhood that you can grow into. Consider the schools, your commute, and access to activities and amenities. A high-rise condo might be appealing to you as a young couple, but what about with toddlers? Or living far out in the country might be appealing, but what about helping with aging parents? All of these things can have an impact on your new home’s resell value down the line as well.
Lastly, don’t be afraid of a “project” house. Homes can be improved over time and on your own terms. You don’t have to fix everything all at once. And don’t let cosmetic blemishes deter you from moving forward in purchasing a new home - wall colors can always be changed.
Are you ready to buy?
The home buying process can be complex and stressful. But when you get your finances in order, discover what you can afford, use a professional, do your homework, and think long-term, the process will be much smoother. These five tips are here to help you get ready to buy a home that you can stay in for many years. So you can start enjoying the independence and creativity home ownership can bring to your life.
