Finding the perfect home for sale is often challenging for both first time and experienced home buyers. The best advice is to always seek counseling and do lots of research. Here we have compiled 10 rules to make your home buying experience less stressful and more simple.
1. Analyze your credit score
A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time, if they give a person a loan or a credit card. The higher your credit score the more likely you will be approved by a lender.
2. Get pre-approved
It is always wise to get pre-approved before starting to look for a home. This helps you stay within your budget, and it shows sellers that you are a serious buyer. Pre-qualification is simple, it can be done online or by phone.
3. Set a budget
Set a max budget before starting to look for a home. Even if you get pre-approved for a loan that is more than what your budget is, stick with what you think is best for you.
4. Find out what you want in a home and in a neighborhood
Turn your ideas of a perfect home into two lists; one should describe your perfect home and the second the “must haves” in a home. As you learn what you want and what is available, you may be able to prioritize from each list. A good location entails having good schools for your children. If you don’t have children, still look for a strong school district because when it comes time to sell your home, this will help raise your property value.
5. Get professional help
These days you can find plenty of information about home buying on the internet, but this shouldn't persuade you against getting professional help. The process of buying a home can get complicated with bidding and paper work, so find an agent that puts your interest first and can help you through this process.
6. Save money to have a good down payment
It’s always good to have a good down payment to buy the house you want. Having a good down payment can help you get approved faster and even negotiate the price of the house.
7. Do your homework
Before bidding for the home you want, do some research about past sales in that neighborhood. Ask your agent questions regarding fees, points, whether the home is in an HOA or not, if the home comes with appliances, etc.
8. Make and offer
After finding the perfect home for you, make an offer. Ask your real estate agent for advice and guidance. You can always counter offer and negotiate terms (closing time frames, price, appliances or furniture included, etc.).
9. Hire an inspector
Besides the lender doing an appraisal for the home you are going to buy, you should hire your own home inspector. He or she will be able to point out potential problems that the house may have.
10. Buy your home and take possession
This is the best part of all. After the closing process you will be able to enjoy and relax in your new home.
What to do if you don’t get approved for a conventional mortgage?
A lot of people get discouraged after they fail to get approved by a lender, but this shouldn't be the case. If you happen to have bad credit or no credit at all, you always have the option to look for owner financed homes.