Do you want to buy a home? 10 steps before buying a home
If you are considering buying a home you may think about 10 steps before doing so.
- Evaluate if you’re willing to stay in the home for several years or if you are going to keep the home for several years before getting into buying one. In buying or selling a home there are transaction cost involved that may end up making you lose money if you sell too soon.
- Start working on having a good credit history. Since most probably you’re going to need to work on getting a mortgage, improving your credit history is always the best way to go. Get your credit report and make sure everything is as best as possible.
- Inform yourself about the areas you would like to live in. Investigate through internet sites like zillow.com, trulia.com and realtors.com about prices, sizes and characteristics available in the market.
- Get professional help. A good Realtor can guide you through different steps in you’re buying process. Despite the fact that there are lots of options of information on the Internet, a Realtor can wrap all your needs in one person.
- Find at least two, if not three financing options. This way you can compare financial options and conditions available to you.
- Try to buy in a good school district. Even if you don’t have school age children, these are usually the most sought after areas and will sell most probably easier and with better conditions. In the case of having school age children you will get the most of your money if you can have your children attend a good or very good public school.
- Get pre-approved by at least one financial institution. This will save you the frustration of falling in love with a property that you may not be ready to put a serious offer on. The pre-approval letter given by a financial institution is based on your actual income, your credit history and your debt. Sellers like to see offers that are serious and have a high chance of getting to a smooth closing.
- Once you have the preapproval letter and your preferred Realtor, go home hunting. Your Realtor should be able to help you out, in case of doubts on what is more convenient to you.
- Before making an offer you should know which are the last sales prices of similar homes in the area. Consider making an offer that is a bit lower than what you expect to reach at the end of the negotiation process.
- Consider hiring a home inspector. A home inspection should help you understand the real condition of your home as much as it is possible.