Tip #1: Get Pre-Approved for a Home Loan
One of the most disappointing things that a home buyer can face is finding the perfect home and then losing it because they weren’t prepared for the entirety of the home buying process. Prepare yourself for the journey that you are about to take!
Before even looking at a home or homes, meet with a quality mortgage professional. Ask friends or family for referrals and do your homework by interviewing potential lenders since you will be working with them for a while. The process begins when you fill out a loan application that includes an abundance of financial information. That information is forwarded to an underwriter who will then review the loan application and supporting documentation, ensure that you meet the qualifications, and determine the amount of a loan for which you qualify.
The loan professional will provide you with a pre-approval letter, which can be shared with your realtor. This will then allow you to jumpstart on the home buying process and show you the price range in which you can afford.
Tip #2: Do Your Homework
Sit down and consider all the in-house and surrounding factors that will influence your home buying decision. Here are a few of the factors:
In-House Factors
1. What size home do you want? Homes are measured in square feet.
2. How many bedrooms do you need now? How many will you want later?
3. How many bathrooms do you want? Do you want a tub or shower stall?
4. What rooms do you spend a lot of time in? For example, if you cook, you might want a larger kitchen.
5. What type of amenities would you like to have outside? Yard, pool, deck, patio, etc. Rank them in order of importance.
Surrounding Factors
1. In what type of neighborhood would you like to live? Is the neighborhood noisy or quiet? Does it have young families or older families? Are there safety concerns about moving into this neighborhood?
2. Are you influenced by schools, public parks, daycare, or public transportation factors when deciding to buy a home?
3. Do you want to live in an area that’s governed by a homeowner’s association?
4. What distance do you want to travel to work?
Tip #3: Choose the Right Realtor
Make sure that you’re working with a realtor that you’re comfortable with and trust. You don’t want to buy a home that you really didn’t like simply because the realtor wanted his/ her commission. The realtor should take the time to understand your needs and only show you homes that meet your criteria. Be wary of realtors that:
1. Are unable to answer questions that you ask about the homes and neighborhood
2. Show you home listings out of your price range
3. Only show you listings of homes that he/ she is selling
4. Don’t listen to what you say
5. Pressure you to make a “quick” decision
6. Refuse to work with your schedule
7. Are impatient with your questions
A realtor is supposed to be your guide through the home buying process. Make sure your real estate guide is right for you.
Tip #4: Get the Home Inspected
Never purchase a home without a trusted home inspector. Too many consumers purchase homes without getting an inspection by a quality, non-biased home inspector only to find out later that the house is in disrepair and/ or is in need of major repairs. Don’t take the word of the home seller’s inspector – ensure that someone contracted by you or your realtor inspects the home.
Tip #5: Work With a Title Company
Definitely obtain a title examination for your new home. Title companies are able to ensure that there are no issues with the existing title. The title company can and should assist with the closing cycle and process as well as assist you, if desired, in obtaining the proper homeowner’s insurance.
