Buying a new home is one of the largest financial investments you will ever make in your lifetime. Making sure you are prepared in advance is important.
There are a couple of key factors to keep in mind regarding your finances. The first would be to not make any large purchases or money transfers in your accounts for three to six months before you are buying your new house. You don’t want to take any chances with your credit profile and it’s easier to provide the bank with easy-to-follow financial records for your mortgage. That leads to the second factor. Get pre-approved on your mortgage! This saves you a lot of time and keeps you from looking at houses that are out of your price range. Finally, you may want to invest in real estate insurance. This gives you a safety net in case anything goes wrong with the purchase of your new home.
It’s a fantastic idea to settle any border disputes before they happen. Hire a surveyor to come and survey the property you are looking at purchasing. Make sure that the property lines are correct. You get taxed on how much land you own and making sure it’s the correct amount could save you money later on. Also hire a home inspector. A home inspector can give you an unbiased, professional opinion on the condition of the home you are looking to buy. A list of changes might be used to bring the seller’s price down, or you may find a much larger problem that completely stops you from buying a house.
A lot of buyers think that they can time the market and buy when prices are low. This is impossible. The market has cycles and they’re never at the same time. The correct time to buy a house is when you find one and you can afford it! If you wait for the market to play in your favor, you will be waiting forever. Don’t miss your chance to get the home of your dreams.
Buying the biggest, prettiest home in the neighborhood is actually not a great idea. If you ever are considering reselling, that type of home only appeals to a very small niche market. Also, as time goes on, the value on the biggest home doesn’t appreciate as much as it would on a smaller home in the same neighborhood. In reality it’s better to purchase the smallest home in the neighborhood. Interestingly enough, the worst house per square foot always trades for more than the biggest house.
So you found the perfect house. Does it sit in the perfect area? Feel free to “stalk” the neighborhood. Drive by the house or through the neighborhood in the morning, in the afternoon, and at night. You might not like what the neighbors do at 5 o’clock when they get home from work. Also, drive to the nearest grocery store. Drive to your work. Find parks and things to do nearby. Ask yourself if that are is right for you. Remember to look up the schools in your area as well. Even if you don’t have kids that go there, the school system affects the value of your home.
The process of buying a house is complicated, sure, but the future and new adventures are waiting. Following these tips and more can help you buy the perfect new home.