If you’ve made the decision to buy a house, it can be an exciting time. You may be looking forward to hunting for the perfect home for you and your family. However, there are some important rules to keep in mind when searching for a home. Read on to learn about tips you should follow for a successful home buying journey.
Know Your Budget
Before you start your search for the perfect home for you, you’ll need to have an understanding of how much you can spend. Several factors play into creating a budget. First, having a down payment ready can help decrease your mortgage payments. Most lenders recommend you have a 20% down payment saved, but it can be more or less depending on the home, income, credit score, and other personal factors.
Once you’ve created a budget and feel comfortable with how much you want to spend, stick to it. This can mean searching for homes that fit your budget for several months. Although this may sound tiresome, finding a home that meets your needs and fits your budget is important. You don’t want to overspend and compromise your finances because you bought a house over budget.
Once you’ve determined how much you can afford for a mortgage payment each month, you can get pre-approved by a lender. This is helpful for many reasons. First, you have an idea of how much the bank is willing to loan you, and how that fits in with your budget. You can also learn about interest rates and how they may affect your monthly payment. Having this information is a great way to ensure that the home you choose to buy is within your means and doesn’t break the bank. Once you’re approved for a mortgage, you have a crystal clear picture of what types of homes will fit your budget.
Know Your Wants and Needs
When house hunting, you may need to separate your wants and needs so that you don’t overlook homes that may suit you. Your needs are things that you can’t live without in a home and that are extremely important to you. As a home buyer, your needs are things you shouldn’t compromise on. For example, you may need a certain number of bedrooms for kids or a home with no stairs for elderly residents. Needs are non-negotiables, so make sure you don’t sacrifice them when hunting for a home.
Wants, on the other hand, are not necessary, but may be nice to have. Wants can often increase the price of a home. An example of a want might be a swimming pool or multi-car garage – things that you could probably live without, but do add value to the home. While wants are tempting, keep these separate from your needs so that you stay within the budget you created.
Use a Real Estate Agent
Involving a real estate agent early on in the house hunting process is a good idea. Real estate agents are trained professionals whose area of expertise is working with home buyers and sellers. Not only do they know the complexities of the home buying process, their industry knowledge can match you with the perfect home and help you negotiate the price when the time comes. The house hunting process can be daunting, but your real estate agent is there to help and has your best interests in mind. If you choose not to partner with a real estate agent when searching for a home, you may be at a disadvantage.
If you’re starting the house hunting process, contact us today to let us help you make a plan. Our team can keep things on track and make sure you get everything you’re looking for in a new home. Contact Katie today, by clicking here.