While buying a new home is exciting, it isn’t an easy endeavor that you can jump into blindly. Even if this isn’t your first home that you’re thinking of buying, you should take all the necessary precautions in order to not make the same mistakes you made the first time. Here are a few tips and tricks that will better prepare you before you plummet into the BIGGEST purchase of your life!
1) Account for All Possible Costs
You know exactly how much your monthly mortgage costs will be, and you know precisely how long it will take you to pay off that mortgage which is great! Now, did you account for that one Christmas where Uncle Jerry puts a hole in your wall after too many rounds of eggnog? Maintenance fees can sure add up over time, leaving your pockets a little lighter.
There’s also the lawyer’s fee, home insurance costs, moving costs and the land transfer tax. All of these can rack up to thousands and thousands of dollars that you might not have. So, make sure you’re aware of all these costs
before making the big purchase. You don’t want to have any surprises down the road!
2) Don’t Fall in Love with that Million Dollar House Just Yet
I know you’ve been eyeing that one home with the huge porch where you and your significant other could read Nicholas Sparks novels while growing old together. But don’t get attached just yet!
First get pre-qualified for a mortgage so you know approximately how much you will be approved for. Don’t get it twisted though, because pre-qualification is very different than being pre-approved. Pre-qualification is an estimate that your lender gives you based on your financial status (debt, salary, etc.). It is basically a ballpark amount with no guarantees. Getting pre-approved is a completely different story. You get pre-approved based on an in depth analysis of your credit report and all other financial dealings you previously had. Based on this, your lender will give you a maximum mortgage amount to which you can purchase your home at.
3) Hire a Mortgage Expert
This may seem an unnecessary step but believe me when I tell you that mortgage brokers know all the tips and tricks for getting you into that perfect home you have always dreamed of. There is a lot of information that banks don’t tell you, and mortgage brokers know what that information is. Knowing this information could be the difference between getting approved for a three hundred thousand dollar house and a seven hundred thousand dollar house.
Also, if you don’t have enough for a down payment, mortgage brokers can help diminish or eliminate a required down payment. Your interest rate will be higher, but at least there are no out of pocket expenses.
Mortgage experts are almost like matchmakers. We match you to the lender and mortgage plan that is perfect for you!
4) Don’t Obsess Over Market Strategies
Brace yourselves, because I’m about to reveal the biggest kept secret in the
world of real estate! Here it goes…
THE MARKET DOES NOT EXIST.
The market is something that the guy who made up unicorns invented. There is no fixed best time of the year to purchase property. The market is not a fixed entity. It fluctuates and is unpredictable. If you wait for the perfect time, that time may never come. The best advice I can give you is to base your purchase on if you have found the right house for you and/or your family, and if you are financially able to afford that house.
5) Acquire a Home Inspection
Don’t read a book by its cover. A house may seem picture perfect with no sign of wear or tear, but a closer look may uncover unreliable structure supports, faulty wiring, or even plumbing nightmares. This will save you a lot of money in the future. If you decide that you still want to purchase the house, then you can ask the seller to hire someone for repairs or reduce the house price.
If you think something is off about the house you are about to buy for a whopping eight hundred thousand dollars, don’t settle. Negotiate until you’re happy, because we’re not dealing with nickels and dimes here. If you’re unsure about anything regarding purchasing a new home feel free to contact us. We are happy to help.
Happy house hunting!