Buying a House – Insider tips for a successful purchase.

Buying a house is a major purchase and takes some preparation.  After all, nothing is worse than finding out that something small and insignificant has derailed your entire home-buying process. The more informed you are, the easier the journey becomes. Below, I have outlined ten steps to simplify your process. Let’s get started.

Nr 1. Pay off your debt before considering buying a house.

Start the home-buying process on the right foot by ensuring some of your debt is paid off. Remember, not all debt is unacceptable. Let’s look at some of the differences between the two.

For more information on the differences between good and bad debt, visit chase.com. The best practice is to consult with your chosen lender and get a deeper perspective on what needs to be taken care of before starting the process of buying a house.

Nr 2. Determine how much you can spend on a home.

Knowing how much you can spend every month is crucial before you get into a 30-year financial commitment. In addition to your monthly payments, you will likely spend money on some of the following.

The ideal way to overcome this task is to set up an appointment with a financial professional. They will review all your finances and give you a price point based on the information you provide. Remember, knowing exactly how much you can spend will save you time when looking at homes relevant to your price point.

Nr 3. Know the market you are buying a house in.

Knowing the market will give you a huge advantage when you buy a house. There is a seller’s market and a buyer’s market. Getting the most for your money depends on which market the housing industry is in during your purchase. Let’s compare both sides to give you a better understanding.

Nr 4. Save money for the down payment and closing costs.

During your home-buying process, you will encounter several associated costs. These costs will depend on the loan you qualify for and its requirements. Below, I have included some of the one-time closing costs.

Sometimes, the seller can assist you with some of the costs. This scenario usually happens when it is a buyer’s market. During the seller’s market, I would not count on the seller to pitch in much, if anything.

Most home loans require a down payment, which can range anywhere from 0 to 20 percent. If you are a veteran, this percentage can be waived. In addition to the down payment, you must cover closing costs, prepaid taxes, escrow fees, etc.

Nr 5. Do not open new credit cards or accumulate new debt when trying to buy a house.

One of the mistakes that new home buyers make is opening a new line of credit (credit card, car loan, etc). Unless it’s an emergency, this is a big no-no.  Please do not go on a shopping spree before you are about to buy a house.

Nr 6. Contact a lender and obtain a pre-qualification.

If you buy a house using a loan, you will work with a lender to provide the required pre-qualification. The pre-qualification is then used to make an offer and get the seller’s acceptance. It is crucial to choose a lender whom you trust. Your lender will ensure a timely closing when you are under contract.  

The best source for finding a reputable lender would be your agent, friend, or family member who is a homeowner. Interviewing different lenders will help you ensure that the process is hassle-free and more enjoyable once you begin looking at homes to purchase.

Nr 7. Begin the home search with a realtor of your choice.

Buying a home is one of the most significant purchases of your life. Therefore, having someone trustworthy in your corner is the key to an excellent home-buying experience. 

A great REALTOR represents you and has your best interest in mind regarding negotiations. Experienced and educated realtors have the knowledge needed to ensure the smoothest transactions. 

Knowing what to look for is second nature to them, as they do this daily. In addition, a good REALTOR should be able to provide the answers or a source where you can obtain an answer. After all, part of buying a house is self-education. 

Don’t hesitate to contact me if you cannot find a realtor to meet your home-buying needs. I would love to help you in any way I can or direct you to someone who is an expert when the matter is outside my area of expertise.

Nr 8. Attend open houses.

Open houses are held by other realtors who represent the seller. An open house usually takes place on the weekends when it’s more convenient for potential buyers to come and see what the home looks like in person.

These events are typically advertised on public websites like Zillow, Realtor.com, and Redfin. However, most are on your agent’s MLS (Multiple Listing Services) subscription, which all Realtors use. 

Let your agent know before you attend an open house so they can accompany you. Before you enter the door, your agent can do the homework on the property and give you more insight. Understanding the property details will prepare you better and save you time.

Nr 9. Make an offer and get Into a contract.

Before entering the contract, your agent should generate a comparable report, which the seller’s agent will also provide. This report shows you what other similar homes in your area have sold for and how fast. This process is critical when submitting an offer on the house.

Feel free to contact me if you would like to know your home’s current value. The inspection period lasts approximately ten days. Use this time to your advantage by researching some of the following:

Nr 10. Closing and celebration day

Closing is the day when the ownership changes from the seller to the buyer. Once you reach this point, it’s time to start moving your belongings to your new home.  A lot has occurred from the beginning to this step.  You are now a responsible homeowner.  Time to celebrate and begin a new journey in your dream home.