Home Buying Tips, pt. 2

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This is the second of a two-part post on tips for buying a home.  Doing your homework will better prepare you in making your dream home a reality.

Research Neighborhoods. Look for neighborhood profiles in the general areas that you are considering. If you are looking to purchase a condo, seek out such information as HOA fees and restrictions. If possible, check with neighbors.  Also, look at nearby conveniences such as  distance to grocery stores, medical facilities, education and day care facilities, religious institutions and distance to your work. Make sure that these places are within an acceptable commute.

You may also want to research local transit options to major shopping and employment centers.  When searching for your new home, make sure to look for links to nearby transit stops. Moreover, a quick search on your favorite search engine for your "city + transit", should lead you in the right direction.

Check out Schools.  If you have school-aged children, make sure to check out the local public school district.  Find out recent test scores in your area, along with teacher to student ratios.  Even if you don't have children, you will find that areas with excellent school districts  are an attractive option for a home's resale value, as well. 

Buying Checklist. When viewing beautiful homes for sale, you may forget to make sure that the kitchen faucet doesn’t drip. A printable buyer’s checklist can help you remember questions to ask when buying a home and things to look for during your tour.  Make sure to take along your digital camera on tours (do ask permission to take pictures!) so that you will have a visual reminder of each property.

If you will be working from home, make sure to factor in your new workspace. Make sure that your high-tech needs can be met. Have a qualified electrician inspect the wiring of the house to see if the system can handle the extra power load that your home office requires. Some older homes may need significant upgrades to handle the extra power, while newer homes are built with more energy-efficient systems to handle the additional power along with heating/air conditioning requirements.

Get a Home Inspection! A home inspector can point out potential problems that could cost you big money down the road. While this may be an additional up front-fee, it is worth it in the long run.

Know recent prices that homes in the area. Make sure to research market conditions for other homes in the area before making an offer so that your bid is in line with similar sales in the neighborhood.  Use an offer comparison tools to see if your offer will be comparable to other selling prices for a particular neighborhood.  This will save you time, so that you can focus your offers based in your specific price range and budget.

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Home Buying Tips, pt. 1

Whether you are a first time homebuyer or you are a seasoned real estate pro, buying a home is always a big decision. This two-part post will give you some valuable tips before starting your home buying search.

Check your credit scores.  Before you start your home search, get copies of your credit report and check for any inaccuracies and fix any problems that you find. This step may delay your actual purchase for an amount of time, but will significantly help you save a lot of money down the road with improved interest rates. 

How Much Can You Afford? The price of the home that you can afford depends on many factors including your income, expenses, and credit scores. In addition to using mortgage calculators, make sure to check with your financial advisor for help determining a price that is comfortable for you, that will allow you to comfortably pay for your mortgage and includes all of your other living and entertainment expenses.

Find a Good Agent. The professional help of a real estate agent can really help in the buying process. Make sure to evaluate references of previous clients and make sure that he or she is responsive and available to you. You may not know exactly what you want in terms of a new home, and your agent should work with you to determine your needs and help you find a property that meets your immediate and future needs. Your agent should be familiar with the area where you plan to move. Talk to your family and friends for successful agent referrals. Ask them how satisfied they were with his/her services and if they would use them again.

Your agent will work with you through the entire home buying process, from start to finish. Your can offer valuable guidance and negotiate on your behalf with the seller.  Your agent will also work on necessary contracts, agreements, and work with all of the required and inspections for a smooth closing.   

Get pre-approved for a loan. This step shows sellers that you are really serious about buying their real estate and that you are financially able to do so. Pre-approval simply means that you have worked with a lender to determine the maximum loan amount that you can obtain with that lender. Pre-approved buyers have several advantages, including increased negotiating power, since the seller knows that you can complete the transaction.   This important step can make a difference when sellers are considering your offer.

Even if you don’t have the traditional 20% down payment for a new home, there are many home buying programs available that may offer some assistance.  Research available mortgage programs with your financial expert, mortgage broker, or talk with your real estate agent.

The next segment will cover the next steps to take once you've decided that now is the time to buy.

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