Tips For Buying Real Estate
Buying a home can seem like an intimidating process — it could just be one of the most expensive purchases of your life. But with diligent research and determination, that dream home can be yours.Here Are Five Tips For Buying Real Estate:
Investigate The Neighborhood.
Don’t just walk around the neighborhood during the day—drive around in the middle of the night and park near potential homes. Take a look around, and ask people what they think about their neighbors. It would also help to look at crime statistics, school district ratings, property tax rates, insurance costs, traffic patterns, and local amenities.
Get Pre-Approved For A Mortgage Loan
Getting pre-approved for a mortgage loan is necessary for two reasons:
- It lets you know how much you can afford to spend on a home. If you’re not pre-approved, there’s no real way to know your budget.
- It tells sellers that your offer is serious, unlike other offers that may be contingent on financing.
Mortgage loans are so standard that most sellers automatically assume the buyer has one lined up and will refuse to consider offers from buyers who aren’t pre-approved.
Know Your Must-Haves And Nice-To-Haves.
Before you begin your search, make a list of the features you want in a home. It’s always best to start with the “must-haves” and then move on to the “nice-to-haves.” For example, must-haves could be location, budget, and number of bedrooms. Nice-to-haves might be other things like square footage, main suite, or basement.
In addition to making a list of features you want in a home (and those you can live without), prioritize them. Decide which ones are most important. That will help you focus on homes that meet your priorities first.
Hire A Qualified Home Inspector.
You’ll need a professional home inspection to confirm the state of your new home. The inspector will check for structural damage and other issues that may impact its value or desirability. You must hire an experienced, qualified inspector.
Ask questions about the qualifications of any prospective inspection service:
- How long have they been in business?
- Do they have error and omissions insurance?
- Are they a member of a known professional organization? (e.g., NAHI)
This will surely give you an indication of how professional they are.
Start Preparing As Early As Possible
Good habits are important to cultivate from a young age. Set short-term goals for yourself: a down payment on a first house or apartment, an emergency fund, etc. It helps to talk about your plans with people who support you and understand your situation.
Consult with friends, family and talk about what would help them the most when it comes time to buy real estate for themselves. For more information consider reading The Best New Home Communities for Growing Families.
In Closing
Buying real estate is a big financial decision, so it’s essential to have a financial plan. The most advisable time to start saving is when you’re young. Even if you have no money now, the sooner you get into the habit of saving and being responsible for your finances, the better off you’ll be in the long run.
