5 Top Essential Tips for Home Buyers

Aug 30

So, you're thinking about buying a home? Congratulations! It's a big decision, but it can also be an exciting one. Here are the top 5 essential tips to help you get started.

1.Get connected with local experts

Before you start looking at homes, it's important to do your research and understand the market. This includes knowing what kind of home you can afford, what features are important to you, and what areas you're interested in. Make sure that the first thing you do is connect with a great local realtor and lender who can help set you up for success.

2.Get pre-approved for a mortgage

Getting pre-approved for a mortgage will give you an idea of how much you can afford to borrow. You'll know how much you can spend, and be more prepared before you start looking. You can get pre-approved through a bank, credit union, or mortgage lender. I highly recommend working with a local mortgage broker. They're usually the fastest and cheapest option, and they'll be able to walk you through all the best ways to save money on your mortgage.

Here are some of the things that a good mortgage broker can do for you:

Help you determine how much you can afford to borrow.
Shop around for the best interest rate and terms.
Help you with the paperwork.
Answer all your questions about the home buying process.
Run numbers for any property you find.

3.Go through what’s most important

Before getting overwhelmed with options, sit down with everyone involved and write down everything you need and want. No home is perfect, so be prepared to make some compromises. However, making a list will help you and your agent in finding the perfect home for you. When you tour homes, don't be afraid to walk away. If you're not happy with the price, condition of the home, or anything else, don't be afraid to walk away and tell your realtor what you did and didn’t like. There are plenty of other homes out there. Buying a home is a big decision, but it doesn't have to be overwhelming.

4.Get a home inspection

Contrary to the idea that bypassing the inspection entices a seller to accept a lower offer—omission of the inspection clause could actually end up costing you a TON in hidden challenges. Not to mention the inspection report is a huge negotiating tactic that you’d be giving up without doing an inspection. Some excellent ways that you can include an inspection and make your offer stronger are to include certain phrases or limits. One of my favorites is: “the inspection report is for informational purposes unless repairs total over x amount.” The inspection report will allow you to see everything going on in and around the home— both good and bad.

5.Don’t do anything to blow up the deal…

I don’t mean to scare you, but… there are so many stories of people accidentally blowing up the deal before closing. How? Well, if you do anything that could affect your pre-approval, you are putting yourself at risk for blowing up the deal. For example: opening a new credit card, paying off debt early, getting a new car loan, switching jobs, getting new furniture with financing, etc. that can affect your credit or amount of income. Make sure you triple check with your lender before making any changes during the process.