The purchasing of a home is probably the largest investment an individual or couple will ever make. It calls for many decisions. When you purchase a home, you can greatly from the knowledge and skill of a Real Estate Agent.
What can a Real Estate Agent do to help you buy the right home for you?
- They will help you determine your affordability. They can suggest ways to obtain the down payment suggest alternative financing methods.
- An agent may assist you in working out a realistic idea of the home which meets your needs as to size, style, features, location, accessibility to schools, transportation, shopping, and other personal preferences.
- Agents have access to the inventory of all available homes in the multi-list system, they can evaluate them and tell you which ones your needs and affordability, and will not waste your time showing you unsuitable homes.
- Agents have the information on real estate taxes, utility costs, municipal services and facilities, values.
- They can help you understand the closing process and they will obtain closing figures in advance of closing for your review.
- Agents may provide you with a list of qualified home inspectors, pest inspectors, surveyors, and help to coordinate inspection appointments.
Top 10 Tips to Successful Home Buying
Tip #1: Research is important in Discovery of your new home
Home sellers won’t call you with an offer to buy perfect home with a wonderful mortgage. You’ll have to find that yourself! Only by reading available information, talking to friends and experts, and spending time looking at different homes, schools, and neighborhoods will you end up with your dream home. Stay clear of massive disappointments by acquiring the best possible information.
Tip #2: Prepare and get Pre-Qualified
The decision to purchase a home needs deep consideration. Preparing a good map to your home buying goals can bring your focus on the important aspects and organize the whole process. Consider using a binder with sections on house hunting, financing, service providers, etc. Pre-qualifying for a loan helps you determine the home price you can afford and presents you as a genuine prospect to the seller. Most often a lender uses the 28% formula (your monthly mortgage can’t exceed 28% of your monthly income) in approving your loan. Planning your actions and getting pre-qualified will keep you out of a stressful mode and allow you to take advantage of opportunities. A well prepared plan will save both time and money!
Tip #3: Value, Value, Value not Location, Location, Location
The likelihood of 10-30% annual appreciation is gone. Thirty plus years ago many home buyers had the benefit of tremendous home appreciation that seemed as if it would never end. Today buyers see slower growth while standing guard from against the possibilities of falling prices, skyrocketing ARM rates and the likelihood of corporate layoffs that can dramatically affect your home values. The classic rule of buying the worst house in the best neighborhood is still valid. If you buy with an idea towards improvement, you can customize the home to fit your needs. The saying, “make money buying a home, not selling one,” should keep you looking towards the long-term importance of the purchasing price.
Tip #4: Be like David Letterman and have a Top 10 List Of Amenities
When shopping for a home, list the features (fireplace, fenced-in yard, new appliances, etc.) that are most important to you in deciding on which home to buy. Determine “your criteria” early on will save time shopping for inappropriate homes and may keep you from buying a home on a whim. As detailed in Tip #3, your top reason for buying a home should be the value you are getting. Some of your top 10 amenities should logically be sacrificed if an incredible value is available.
Tip #5: Financing decisions
Whatever type loan you choose; make sure that you scrutinize all the closing costs. If you are required to have a mortgage escrow account and private mortgage insurance, make sure you understand the terms and cancellation procedures Make certain there are no prepayment penalties so that you can utilize an accelerated mortgage plan. A good mortgage reduction plan can save you a great deal on money in interest costs, and shorten your loan term, with only small extra principal payments. If you experience negative changes in your job, health, or marital status, you can revert to the standard payments in your mortgage contract.
Tip #6: Sign a Contract That Protects You
Make sure that the agreement you enter on a house allows you time for getting financing, inspections and to settle any issues or problems which may service. Being certain that the agreement you are a part of will lessen potential legal battles will let you walk through your yard with your family and neighbors instead of tip toeing through it as if it was a minefield. .
Tip #7: Put Yourself in The Seller’s Shoes
You are on the edge of making one of the most important decisions that will affect both your life and the life of the seller. If you take time to understand the reasons the seller bought the home, their reasons for selling, and the home improvements they have or have not made, you’ll be in a better position to evaluate the home and negotiate a better deal. In the end, the home buying process excludes the professionals and comes down to the individuals buying and selling the home. A closer look at the seller may help you in deciding whether and for how much to buy a particular home.
Tip #8: Develop a Mortgage Shopping Chart
One of the biggest decisions to make before entering an agreement on a home is how to finance the purchase. There are many lenders competing for your mortgage business. You can no longer simply walk into the community bank and negotiate with the loan department manager. Today, you can apply for a loan on-line or even use a mortgage broker to shop for your loan with many other lenders. When choosing a lender, you want to avoid apples to oranges. Create a chart that lists different types of loans, fees, and at least five mortgage providers (including a mortgage broker).
Tip #9: Get a Professional Home Inspection
Although it is hard to believe, more people pay for inspections before buying used cars than when making the biggest investment of their lives – their homes. Paying for a qualified home inspection before you buy a home isn’t just spending “a little extra” for peace of mind; it’s absolutely essential for anyone who doesn’t want to spend thousands of dollars for repairs.
Tip#10: Peace of Mind: Home Protection Plans
To protect both you as a buyer, as well as the seller, it is a good idea to purchase a home protection plan. What exactly is it? A home warranty, or home protection plan, is a service contract, normally for one year, which protects homeowners against the cost of unexpected repairs or replacement of their major systems and appliances that break down due to normal wear and tear. A negotiable contract between the buyers and sellers which does not overlap or replace homeowner’s insurance policy, this type of warranty can save the new homeowner lots of headaches, as well as put seller’s fears to rest. The warranty covers mechanical breakdowns, while insurance typically repairs the related damage. For example: if a hot water heater burst and destroyed a wall in your home, the warranty would repair the water heater and your insurance would pay to fix the wall.