Whether you are buying a house the first time or you are a seasoned buyer, it is still a stressful event in your life. No matter how much you read and study the subject in advance, you still might make a couple of mistakes. So we have compiled a list 7 of the most important home buying tips that will help you sail through this process seamlessly.
Make a checklist
Before you start shopping for a new home, sit down with your loved ones and make a list of all the things you want and don’t want to have in your new home. Work on this list for a couple of days trying to find compromises on all items with your family and take into account wishes and needs of all family members. Once you are happy with this list, turn it into a checklist of things you will look for in the homes you will consider. You can also give this checklist to your realtor or a broker, if you are planning to work with one.
Plan your finances
Once you are done with the checklist, plan your finances carefully. There is nothing more important than planning a workable budget and sticking to it when you are buying your first home. By doing this you will have a good idea how much you will have left every month once those mortgage payments kick in.
Know your limitations
Do not overstretch your planned budget. It is very easy to convince yourself that you can afford a house you really like that falls out of your budgeted amount. It’s easy to get carried away and jump into overly optimistic thinking mode persuading yourself that you will get a promotion or find a better job. Whether it will or won’t happen is an unknown variable. But what is a sure thing is that you will place your family in a very uncomfortable financial position for the next couple of years. And if nothing turns up to increase your income, or if you experience financial difficulties for a prolonged period of time, an already overstretched budget may turn your otherwise tolerable scenario into a nightmare.
Find a mortgage broker
A mortgage broker is a specialist that helps find the best mortgage deal for your specific situation. If this is your first home purchase, this specialist will help you understand all the nuts and bolts of the process and explain all the features available.
Even if the house you chose seems impeccable, still hire an inspection company to have it checked for you. Only a trained professional can properly check the house for quality, safety and overall conditions. If an inspector finds some serious flaws with the house during inspection, you can safely get your deposit back and retrieve your offer. Or you can significantly decrease the price with further negotiations. You can also negotiate to have the seller make all the repairs prior to the purchase.
In any case, you will have a better idea about the property you are going to purchase and make an informed decision.
Make an offer
Your agent will advise you on the best price you can offer for this house and the conditions you can ask for. He will then send your offer to the seller’s agent and the seller will either accept your offer or issue a counter-offer. This process may take a couple of steps, going back and forth. Once you agreed on the price, you will move on to the security deposit phase. When you place a deposit with the seller, you lock in the price and ensure that the property is removed from the market while you are doing all the paperwork and settling all the money matters. After the deposit you can have an inspection of the property.
Move in or move on
If the house inspection does not reveal any serious problems and you are able to work out the deal with the seller, this is the time to close the deal. Closing the deal involves a lot of paperwork. But in the end, you will become a proud owner of a new property.