TOP 10 BUYER TIPS FOR A SUCCESSFUL HOME PURCHASE
Buying a home sooner will allow you to start building equity in your home! But here are a few tips to make sure you are prepared for the process that comes along with buying a new home.
- Start saving
- Most loans will require a 5-20% down payment on the property. You will need to be prepared for closing costs as well which will be around 3% of the purchase price of the property.
- Don’t open new credit cards, buy expensive jewelry or a new car while trying to secure a loan for your home and hold off on purchasing large items until you have closed on your new home. It is important to have proof of employment and you may need to work on raising your credit score to be sure you can attain the best interest rate and type of home loan.
- Speak with a few lenders (if you need a home loan to purchase a home)
- Lenders are not all equal. It is important to find a lender who is good with communication and is dedicated to making sure your transaction closes and closes on time. Fluid communication between the lender and realtor are vital in securing a successful transaction.
- Lenders do have different programs and loan options depending on your situation.
- Get Pre-qualified
- Generally, you will need to submit two years taxes and financial information to your lender so they can calculate exactly what you can afford and roughly predict what your monthly payments will be. In some cases, you will need to submit your pre-qualification form when you submit an offer.
- Find a licensed and knowledgeable realtor!
- Ask questions about their experience and how they are different! Be sure that you have the right realtor working for you. Buying a home can be a complex endeavor so be sure you have someone who can guide you and ultimately help you find the specific home that matches your needs. Your realtor should make you and your goals a priority and negotiate on your behalf.
- If you don’t have a lender, most realtors will have lenders that they prefer to work with and can easily.
- Know the market!
- The housing market changes week to week, month to month and year to year. Yes, we see trends and most changes are somewhat predictable but when you are buying, it is important to be educated from both your lender and realtor as to the current state of the market.
- Home search/open houses
- Allow your realtor to assist you in finding homes that fit your ideal set of parameters including cost, size of home, number of bedrooms, location, etc. Open houses are also a great way of familiarizing yourself with specific neighborhoods and value.
- Make an offer
- Work with your realtor to come up with the best strategy to get your home! All your realtor to negotiate on your behalf. There are multiple items to negotiate besides the base price of the home.
- Prepare for the Inspection
- Your realtor will help you find a licensed inspector to inspect the home you are purchasing. There can be a myriad of issues that arise from a home inspection; some big and some minor. You and your realtor may work together on a list of items you would like fixed prior to close of escrow. The sellers then have an opportunity to agree to fix the issues or not.
- Be prepared to close
- Have all your information up to date. Be sure to get any necessary supplemental information that is requested by your lender or the title company in a timely manner.
- Be in close communication with your realtor for any final questions.
- Be ready to Move!
- Your home will likely be “clean” when the keys are turned over to you, however, you may need to hire a professional cleaner or do the deep cleaning yourself prior to moving in your goods.
- Hire movers to help move your big items. They will be sure that there is no damage to your valuables as well as decrease your risk of injury.
- Be patient! Moving is stressful but once you are in your home, you can start making the space yours.
