Home Buying Tips

Plan ahead - From the moment you begin thinking about buying a home, start planning. Home buying is a time-consuming and demanding process, and it’s a good idea to utilize your management skills early on.

You should start by requesting a copy of your credit report. Carefully examine it for errors, and clean it up before you talk to a lender. Are you currently renting? Check your lease for an early release clause. If you'll be subject to penalties, try to time your closing with the expiration of the lease.

During this planning phase, consider your life over the next five to seven years. Do you plan to start or grow a family? Will an in-law eventually move in with you? Will you be working from home? The number and layout of the rooms you require will depend on your answers.

If you qualify for financing based on a dual income, will you be able to survive on one salary in order to fulfill a long-range plan, such as one parent staying home to raise a child? Once you've answered these questions, establish a plan. Then direct the process with reference to the plan. Don't let the process dictate to you.

Understand the home buying process. Homebuyers need to ask questions; lots of questions. So you need to choose a real estate agent who has experience and is willing to explain the entire home buying process-from viewing homes to negotiating, to financing, to escrow and closing-in detail.

Stay within your budget when searching for a home. What can you do to avoid becoming enamored with homes that are out of your price range? Monitor your expenses for a couple of months. Then, based on your results, develop a budget that truly reflects your lifestyle. We can provide insight into new home expenses and taxes. Then revise your budget.

It's smart to ask your lender to pre-approve, rather than pre-qualify, you for a mortgage. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Your lender will thoroughly evaluate your application-including verifying employment information and financial disposition-then approve you for a loan of a determined amount.

Once you learn how much of a home you can afford, stay within your budget. Just because you've been approved for a certain amount, doesn't mean you'll feel comfortable with monthly payments at the high end of the range. Ask yourself if you can live with these payments. Do they fit your established budget? If not, rethink your spending limit. Your home should give you great pleasure, not hold you hostage.

When you relay your price range to your real estate agent, ask to view properties within that range only. By restricting yourself, you'll avoid disappointment later on.

Look at many homes, including an assortment of types of homes. When you view a property, list the positives and the negatives. Make certain your furniture will comfortably fit into the space. Visit at various times of day to see how much natural light floods the rooms and check for changes in traffic patterns, especially at local rush hours.

Also, think about how long you plan to own the house. Would it be difficult to resell? List the negatives. Could you eliminate or reduce them?

Investigate the area in which you are thinking of buying. Don't stop your inspection at the property line. Examine the surrounding area. Is it safe, well maintained and moderately quiet? Is it convenient to work, schools and shops?  If you're not familiar with the area, ask friends and colleagues about it. Do your research.

 We welcome you to contact us at (417) 882-9936, with any questions you may have.