Home Buying Tips
Many people find the process of buying a home a little daunting and sometimes overwhelming. You’re not alone. No two buying experiences are the same, but these home buying tips provide an idea of the different steps you may encounter when buying a home.
Despite recent slowdowns in some markets, housing remains a good long-term investment, and demographic demand favors housing over the longer term. Homeownership offers immediate benefits and long-term value. Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they can use, improve and sell.
WHAT’S THE RIGHT HOME FOR YOU?
Are you looking for a home? Before deciding which house to buy, think about your lifestyle, our current and anticipated housing needs, and your budget. It’s a good idea to create a prioritized list of features you want in your next home- you’ll soon discover finding the right house involves striking a balance between your “must-haves” and your “ nice-to-haves.”
To start, consider your lifestyle. If you love to cook, you’ll want to well-equipped kitchen. If you’re into gardening, you’ll want a yard. If you’re planning your office at home, you may want a room for a separate library or work space. If you have several cars, you may require a large garage. Use this list as your search guide.
Next, think about what you might need in the future. As you consider our housing needs, it’s important to consider how long you may live in your home. If you’re newly married, you might not be concerned with a school district right now, but you could be in a few years. If you have aging parents, you may want look at homes that offer living arrangements for them as well as you.
It’s important to think about your new home’s location just as carefully as you do about a house’s features. Location is a huge part of any move. In addition to considering the distance to work, you need to evaluate the availability of shopping, police and fire protection, medical facilities, school and day-care, traffic and parking, trash and garbage collection, even recreational facilities.
Perhaps the most important decision is deciding on the type of home you want. Do you want a condominium or a co-op, a town house or a detached single-family home? Do you want brick, stone, stucco, wood, vinyl siding, or something else? Do you prefer a new home or an older one?
Through all of this, make sure to talk to your real estate professional about where you want to live. While more buyers now use the internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire home buying process: he or she is available to analyzed data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction.
HOW MUCH CAN YOU AFFORD?
Now that you know what you’re looking for, the next step is figuring out what type of home you can afford. A review of your income, savings, monthly expenses, and debt will be necessary.
Early on in the process, you’ll want to get pre-qualified for a mortgage loan, which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you’ll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.
The price you can afford to pay for a home will depend on several factors, such as:
- the funds you have available for the down payment, closing costs and cash reserves required by the lender
- the type of mortgage you select
Another figure lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance (also known as P.I.T. I.).
KNOW YOUR NEIGHBORHOOD:
When you buy a home, you’re investing in a community. You’ll spend a significant amount of time and money supporting the schools, community organizations and commercial centers in the surrounding areas. Before you make the final decision, take a good look at the location and make sure it fits your needs.
- Evaluate the properties proximity to other important locations in our life. How long will your commute time be? Is there a hospital or doctor’s office nearby? What about schools, childcare, shopping, family and friends?
- Consider all your transportations options. A new home could lend itself to public transportation options or car-pooling. Depending on the type of community, you may be able to find alternative methods of transportation. Take the time to drive from the new home to your commuting destinations to understand the impact it will have on your lifestyle.
- Visit and understand the school district you’ll be moving in to. Even if you don’t have children in the school system now, you may some day. The district reputation could positively or negatively impact the selling price of your future home as well.
- Make sure you fell comfortable in the area. Drive around the neighborhood at different times of the day and night on multiple days of the week to observe activity/noise levels. Discovering that barking dog next door or noisy road conditions will eliminate unneeded stress from a hasty decision.
WORKING WITH AN AGENT:
Buying a home is one of the most important decisions you will make. That’s why it’s in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live. When you choose a P.R. & M. Agent, you’re are dealing with an experienced professional who understands your concerns and will provide you with the personalized service that make all the difference.
MAKING AN OFFER:
Once you’ve found your dream house, it’s time to get started with the financial and contractual side of the purchase. Let your P.R. & M. professionals guide you through this process. Purchase contracts vary in length and terms form state to state, and within a state, from locality to locality. Because you and the seller have different goals, rely on our P.R. & M. agent’s experience and expertise. He or she can bring order and calm to the process and will know what questions you may not know to ask to help you reach a favorable outcome.
Multiple offers on the same home are not uncommon, so you may only get one chance to make an offer that the seller will consider. That’s why it’s important to think carefully about your strategy. In most cases it is better to have your real estate professional negotiate the offer. If you have any personal interaction with the homeowner, don’t give out any information about your move, your current housing status, financial status or your feelings about their property- positive or negative. This could hurt you in future negotiations.
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Real Estate
