Home Buying Tips I Wish I Knew When Purchasing

Homebuying Tips Article

Summary: There is a lot of information on what a homebuyer should and should not do when purchasing a home. Factors, such as connecting with a mortgage lender or the home’s location, need to be addressed before moving forward with the purchase. As industry experts, we have listed nine simple home buying tips to help buyers when purchasing a home.

Whether you are in the market to buy a home or are considering one, it helps to know a few tips to set yourself up for success.

Nine Home Buying Tips I Wish I Knew When Purchasing

  1. Connect with a Mortgage Lender
    • Your mortgage lender will ask questions to understand and assess your financial situation. From this assessment, the mortgage lender will issue a pre-approval. The pre-approval letter provides the loan terms, length, and amount available to borrowers.
    • If needed, mortgage lenders can refer borrowers to trusted realtors to help with their home search.
  2. Partner with a Trusted Realtor
    • Your realtor will guide you through the home buying process and protect your interests.
    • They offer knowledgeable advice on the housing market’s condition and help assess neighborhoods and homes, schedule tours, negotiate, and write up contracts.
  3. Location, Location, Location
    • You can change how your home looks, but you cannot change your neighborhood.
    • Drive around your neighborhood and ask your realtor to help you research its crime rates, school ratings, future developments, and other helpful information to get a better understanding of the environment.
  4. Keep an Eye on the Season
    • Certain times of the year are opportune for different home buying goals.
      • If you are looking for a wide range of home options, spring is a great time to purchase due to high inventory.
      • If you are looking to purchase at a lower price, winter will be a great time to do so.
  5. Focus on Long-Term Goals
    • Before deciding to buy a home, keep your short and long-term goals in mind.
    • Do your future goals include working from home, settling down, or expanding the property? Can these goals be fulfilled by the home you are considering purchasing?
    • If you do not see the home fulfilling your future goals, continue searching.
  6. Look into the Property’s Condition
    • A home in need of minor updates or renovations to align with your individual style is acceptable
    • A home that needs major repairs and renovations may get costly. The time and money invested may outweigh the low home price.
  7. Buy What You Can Afford
    • Your monthly mortgage amount should be an amount you can comfortably manage.
    • Do not feel the need to use the entire loan amount offered by mortgage lenders, instead, borrow an amount that is within your means.
  8. Understand Your Budget
    • Sticking to your budget will help you avoid falling in love with a home out of your price range, and will ensure you have a monthly mortgage amount you can confidently pay towards after closing.
    • Differentiate between your wants and needs
      • Creating a list of all the features you want in your home and the features you would like can make the home buying process easier.
      • It is important to pinpoint the features that can be overlooked and the features that are a must.
  9. Improve your Credit Score
    • Your credit score is crucial when it comes to getting a mortgage.
    • Higher credit scores receive more favorable loan terms and interest rates.
    • If your credit score is low, take the time to improve it before you apply for a mortgage.

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