Avoid Making Large Purchases – Applying for new credit cards or accumulating too much debt will affect how much the bank will loan to you towards your home purchase.
Get Pre-Approved for Your Home Loan – This will guide you to look at homes in the price range you can afford. It will also tell you what type of loan you are approved for. Certain loans will have different standards on what the property condition must be. It is important to know what things to look for while searching for your home.
Picking the Right Time to Purchase a Home – The right time to purchase a home is when you find your perfect home and you have the money to purchase it, not a certain time of year.
Know the Cost’s Associated with a Home Ownership – Make sure to incorporate property taxes, homeowners insurance, utilities, and repairs/maintenance to the budget.
Think About Resale Value – Location is everything! Make sure if you were to resell the sorrounding area is appealing.
Know the Neighborhood – See the home at many different times of day to see what the traffic is like, know if there are a lot of kids in the neighborhood, and know how far away from schools and shopping centers the property is.
Hire a Home Inspector – With this much money on the line you need to know exactly what you are getting yourself into. A home inspector will go through the home and provide you with a report covering the componants of the home, and any concerns they might have found. Keep in mind a home is a used product and you don’t want to use it as a chance to nit pick the home.
The “Secrets” of Placing a Bid – The most important thing to keep in mind when you place a bid is your budget, and what you think the house is actually worth. It is important to not offend the seller and cause waves at the very beginning of the negotiation process by submitting a lowball offer. If the market is saturated with many similar listings you might be able to get away with a lower offer. Calculate the price per square foot and compare with other other similar homes that have sold.
