By: Eric Reyes
About the Author:
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.
Anyone who is ready to buy a house for the first time may not understand all of the steps involved and what is required to become a homeowner. For those who are new to the process, it can be easy to feel overwhelmed or stressed while navigating purchasing your home and finding the right property for your needs. If you want to master the art of buying a house, there are a few tips to follow.
1. Get Pre-Approved
One of the most common mistakes that many people make is shopping around for a house before securing their home loan. Get pre-approved in advance to ensure you know how much you can afford to spend. Sellers will also take your offer more seriously if you’ve already been approved for a loan instead of having to wait for you to apply for it.
2. Know Your Budget
Knowing what you can afford is crucial to avoid falling in love with a home that will make you house poor. Your home shouldn’t exceed more than one-third of your take-home pay, which includes the various expenses associated with maintaining the home and other costs like HOA or homeowner’s insurance.
3. Hire a Real Estate Agent
Many buyers assume that they can save money when buying a home by searching the real estate market without the help of a realtor. It’s important to use the help of a professional because the seller is the one to cover the costs of their services, which makes them free for you to use. Real estate agents are more informed of listings that may not be advertised, which can allow you to have more options and find something that is more specific to your needs.
Realtors from agencies like ZEB Reality Sunshine Coast can also allow you to save more money by helping you to negotiate the selling price. They have a lot of experience and skill in working with sellers and avoiding tension by offering less than the asking price.
4. Know What You Want
Provide your Realtor with a list of your wants and needs so they can understand what you’re looking for in your next home. Knowing your priorities and must-haves will also make it easier to narrow down the best property if you’re having a hard time deciding which home to purchase.
5. Start Saving Early
The home that you can afford is determined by how much you save for the down payment. Some lenders will allow you to put down as little as three percent, whereas other loans require up to 20 percent down. The more money you put down on the house, the lower your mortgage payment will be each month.
6. Strengthen Your Credit
You’ll have a better chance of getting a loan if you can strengthen your credit. Pay off remaining balances on accounts and make your payments on time to boost your credit score before applying for a home loan. Less credit card utilization will also increase your score.
7. Consider the Neighborhood
It can be easy to fall in love with a house without taking the surrounding area into consideration. Calculate how long it’ll take you to get to work each day and examine the quality of the homes on the block to determine if the neighbors maintain their properties.
8. Attend Open Houses
You can visit open houses in person as a way of touring the property when the buyer isn’t present. Open houses can allow you to envision living on the property and check out all of the features without having to schedule an appointment with the realtor.
9. Pay for a Home Inspection
After you make an offer on a house, schedule a home inspection to ensure any defect or major repairs are uncovered. The inspection can allow you to determine if the home is still worth buying and give you more wiggle room to negotiate the asking price.
Following the right tips for buying a house can make it a smooth and successful process. You can enjoy finding a property that meets your long-term needs without too many complications along the way.