Are you in the market for a home?
Whether you’re a first-time homebuyer or you’re looking for a second or third home, the home buying experience can be challenging. You’re making a massive financial investment – possibly the biggest you’ll make in your lifetime – so you want to make sure you’re getting the decision right.
While there isn’t a 100 percent guarantee that you’ll end up with the perfect home, there are steps you can take to enhance your chances of getting a home that suits your living needs.
We’re fleshing out a handful of home buying tips you should keep in mind. Read on!
1. Know What You Need in a Home
Buying a home isn’t like shopping for groceries. When shopping for the latter, you can go to the store without knowing what you want to buy and go home with everything you needed.
When buying a home, it’s important that you have a good understanding of what you want. This is because homes come in various shapes, styles, and sizes. If you don’t have a clear picture of what you want, you might end up buying a sprawling condo while all you needed was a single-family home.
As such, start by listing down your basic needs. How many bedrooms do you need in an ideal home, for instance? What about the garage size? Do you need a backyard?
Once you have the basics down, you can focus on the secondary features you do wish to have. Maybe you want a swimming pool or an outdoor kitchen.
2. Get Pre-Approved for a Mortgage
If you’re anything like the average home buyer, you’re planning to get a mortgage. However, while the vast majority of homeowners have mortgages, it doesn’t necessarily mean your mortgage application will be approved.
You don’t want to go shopping for a house without knowing whether you qualify for a mortgage. This is why it’s important to get a pre-approval.
Identify a suitable lender, find out the mortgage requirements, and submit your application. When you have a pre-approval, you’ll know how much house you should be hunting for. For instance, if you’re pre-approved for $500,000, you shouldn’t be looking for a million-dollar home, unless you’re ready to pay the balance in cash or as a down payment.
If you’re struggling to raise the deposit, you can opt for down payment assistance. The pros of down payment assistance include enhancing your chances of getting a better mortgage and saving money.
3. Hire a Buyer’s Agent
Buying a home is a multi-step process that can seem complicated to the average buyer. The good news is you don’t have to go through it alone. You can hire a real estate agent to help and guide you every step of the way.
You’ll pay a commission (around 5 percent of the home’s closing price) but you’ll have impeccable services.
Put These Home Buying Tips to Use
Buying a home is a big financial step. It’s also a major life decision. You want to ensure that you aren’t making mistakes that you’ll regret. With these home buying tips, you now know what you can do to improve your chances of buying the right home.
Keep tabs on our blog for homeownership tips and advice.