What You Need To Know Before Buying A Home
Today’s Real Estate Market
People are spending more time searching the Internet looking for Real Estate all over the country seeking out the best prices for homes in amazing areas. They want to stretch every dollar they can to provide the best life for themselves, and/or their families. Just in the United States alone, 560,000 homes sold in the year 2016. But, when buying a new house there are a few things you need to know.
First, know your credit score; this places the biggest factor on what your loan terms and conditions will be. What realtors like to see is a 700 or above, but there are poor credit loans available just with higher interest rates. If you do not have a good score rating, and have the time to repair it, please work diligently to do so. This will give you the best loan options with the best interests rates possible when buying a new house.
Secondly, it is suggested that before you start looking at homes and getting your eyes locked onto a particular property, get pre-approved prior. Once you step into the real estate agents office, this will allow you to know what you are qualified for and what areas you are able to get the most from your finances. Taking this step will also aid you if a purchasing war begins due to another potential buyer being present. Already having a pre-approval from a lender shows you are ready and able to take the next steps.
The next step you want to take when buying a new house is to shop lenders; especially if your first time home buyers. The average mortgage on a home is thirty years, so you will be paying on your abode for a while. Shopping for the lowest interest rates should be one of your prime considerations. So while you’re seeking out the best mortgage, look at the rate and the entire package that is offered.
Another important factor you should consider as your buying your house is to know your expenses. There are a lot of fees that come with purchasing a new or used home besides just the mortgage. You should have the income and budget to afford the homeowners insurance, the annual property taxes, home repairs, etc., when you decide on buying a home. Additionally, you should always be sure to have a savings for emergency purposes; you never know when something needs to be fixed or replaced.
Before you begin your search for a real estate company, know what exactly you are looking for. Are you buying a new house, or purchasing one that has been lived in by its previous owner(s)? Do you want a condo overlooking a pond attached to a community park or a penthouse with amazing city views? Make sure that whichever direction you decide, that your new home fits all your needs.
Next, you want to find a real estate agent in the area you want to live. Every neighborhood and city has its unique qualities to them and they will know it best. Be sure to shop around and interview multiple agents in different companies; make sure you find one who is a full time agent that is well established. The more experienced they are, the better they will understand the market value and property in different areas.
Understanding the market value of any home is crucial if you want to avoid overpaying when buying a new home. Additional fees to the purchase price, like inspections and appraisals, can cost more if you do not understand the value of the property. Also, be comfortable with what you’re paying each month on your mortgage. Just because you are approved for a $500,000 loan does not mean you should spend it.
Also, verify all the information in the listing; be sure of what stays with the home and what is personal property. When buying a new house, it is important to visualize yourself living there; and finally, hire a reputable inspector to inspect your new home before signing papers.