The crunch is on for house hunting. Like every hunting expedition, shopping for your new home needs to get the right gameplan in place. Most first time buyers feel a mix of excitement and apprehension when deciding on their dream home because of the financial complications that comes with it. Don’t let realty jargons intimidate you. A few tricks of the real estate trade will come handy in getting your geek on. Check out these 4 tips for buying a house and getting more value for your money:
- Think long term. Don’t buy a house based mainly on your emotions or gut feel. You also have to think and decide like a skilled investor would. Don’t try to time your purchase decisions with a highly volatile market because you never could. Once you find your dream home – go for it. Don’t be pressured to purchase a home just because everyone else is buying one. Also, a big house does not always mean it’s a goldmine. Always think long term and not just for what feels good today or a spur of the moment.
- Don’t jump to the bait. Even though it might be tempting to go for the maximum loan amount – don’t do it. Some lenders or even realtors may suggest or recommend that you go max but choose to stick to the plan. You have to inquire how much you can actually borrow before you go forward with hunting for homes. You need to set realistic goals and check whether you can really afford your chosen property. Shop for homes that are within your budget or else you could end up in a financial rut.
- Get a good credit score. Buying a home is considerably one of the biggest decisions you will make in your lifetime – you have to make it right by starting with a good credit score. In order to qualify for financing, you need to have a good credit reputation. Basically, the higher your credit score is, the lower the monthly repayments. A good credit score would generally start from around 640 to 670 and nothing below that line. You get the best mortgage rates if you happen to have a credit score of at least 750 and up.
- Save money for the downpayment and closing sale. Avoid living paycheck to paycheck and start saving today for your dream home. You must be able to save up at least 3 months’ worth of mortgage payment so you avoid any default in payments. In addition, you must also save for the upkeep of your new home like for maintenance and repairs that can disrupt your budget.
- Get home inspection. This may be optional but is completely necessary before buying a home. You must have a professional home inspector to inspect your dream home to see if it’s worth the price. This serves as a contingency that will allow you flexibility in purchase offer depending on how put together your home is. A home inspector would check on the exterior and interior components of your home to see if there are damaged parts that need immediate repair or replacement. The home inspector would then provide a report and recommend a particular routine maintenance to be done on your home.
Your home is likened to an alter-ego. It’s not just a roof above you head as it also is a representation of your ideals and visions for your family. It is important to make a preflight checklist for buying a new home. The above tips would come handy for anyone who needs some direction in accomplishing a dream home project.