What are the most important things to know? We have the answers!
Your credit score is one of the biggest factors in what your loan terms will be. Know your score before you ever try to get a loan, and take the time to repair it if it is lower than 650. A good score which leads to a low-interest rate can save you tens of thousands of dollars over the life of the loan.
In fact, getting pre-approved it is one of the most important parts of the process! Pre-approval means you should be able to get the loan as long as nothing changes about your financial situation. A pre-approval letter also helps when you want to compete with another buyer for a home you love.
There are a lot of fees that come with a home purchase, beyond the mortgage. Insurance, repairs, inspection, survey, property taxes. Real Estate agents talk all the time about additional expenses to consider when buying a home. You should also have some savings to cover emergencies with the home.
Every neighborhood has its unique qualities that you want to be aware of before you buy. An agent that is well-informed about the area will also know what homes there are worth, which will help you avoid overpaying for a property. You want a real estate agent who knows their stuff locally!
You may be cleared for a loan that is far above what you are comfortable paying for. There are a lot of home buyers who will mortgage themselves to the hilt only to find out later they are a slave to their home. Unless you want to be eating spaghetti dinners at home, every weekend don’t stretch beyond your means.
Sometimes when you view a home, it will be filled to the brim with the current owner’s things. Learning to see past the clutter to the potential of the home for you may allow you to find better deals than you would otherwise. Cluttered homes can sell for less money when those with a lack of vision can’t see past it.
You want someone who knows what they are doing and is not motivated to miss issues to encourage a sale. It's best to research the company you will use and make sure they have a good reputation. The last thing you want is to have issues later down the road that should have been caught on the inspection.
As crazy as it sounds, some buyers will turn down a home that meets all the criteria because they can’t see past the ugly carpeting and green walls.
One of the easiest things to change about a home is the wall colors. Paint is inexpensive and can be applied by you after you buy. The same holds true for carpets.
Any changes, like getting a different job or taking out a car loan, can result in denial of the loan. While I like to educate all of my buyers on making large purchases while buying a home there are many who do not. Making a large purchase is not a prudent thing to do when buying a home.
Buying a fixer-upper in an area that is growing more popular offers the possibility of an increase in the value of your home.
Consult with your real estate agent and ask them their opinion on the prospects for profit if the general area continues to rise in value.