A home purchase is essentially one of the largest purchases you’ll make in your lifetime. It’s important that you that you are informed and confident about the decision you’re making. Check out these six tips that will save you time, money, and headaches:
FIND THE RIGHT AGENT
This is extremely important. Finding an agent that will make the home buying process as smooth as possible is absolutely crucial. Buying a home is nothing minor. Making sure that you are working with someone who’s trustworthy, reliable and dependable is a no-brainer. You also want to make sure your agent is accessible. During the process you will have questions in regards to the home itself, your loan (if financed), the home inspection, appraisal, closing process, and many others. If these questions aren’t addressed in a timely manner, it could delay the closing or leave you uncertain and unsure about important issues.
GET PRE-APPROVED
To begin home shopping you will need a pre-approval in hand. A pre-approval letter provides documentation of exactly how much you have been approved to borrow for a home purchase. This documented evidence shows both Realtors and sellers that you are serious in your pursuit of purchasing a home. Talking with a lender will allow you to understand your buying power and feel confident about purchasing a home the moment you find the right one. The pre-approval letter also allows you to stand out as a strong and serious buyer when you’re ready to write an offer. In fact, most sellers will not consider an offer it it’s not presented with a pre-approval letter.
SHOP AROUND
Now that you know the importance of getting preapproved, who do you talk to about this kind of thing? Most people immediately turn to their current bank. Although there is nothing wrong with this, don’t be afraid to shop around. Every lender has different programs, products, and rates available. Getting two or three quotes before choosing your lender isn’t a bad idea. In fact, I’ve seen the difference in one lender’s interest rates and closing costs make deals come together that may have fallen apart with other lenders.
In addition to choosing the right lender based on the money component, you also want to make sure that they’re going to be actively communicating with you. You will have plenty of questions pertaining to your loan and financing, and those questions need answers. If you’re unsure who else to call for a pre-approval, reach out to your real estate agent for some references. Every good agent should have several lender contacts available for their clients.
WRITE THE VISION
Now that you have your pre-approval letter, it’s time to go shopping! Write down what you’re looking for in your new home. What are your must -haves and your dealbreakers? Some buyers are most concerned with the location of their home. Some prefer a specific school district, or they may have family that lives nearby and desire to stay close. However, if you are a bit flexible with location, branching out in different locations may get you more for your money. For example, a home priced at $100,000 in location A may not have as many updates, space and amenities, that a home for $100,000 in location B might have.
It’s important to express to your real estate agent your dealbreakers. Once you have identified these, do not compromise, and don’t let an agent pressure you into purchasing a home they don’t have to live in. You’re not buying a house, you’re buying a home. Your home!
IF YOU LIKE IT, THEN PUT A RING ON IT
This one I can’t stress enough. At the beginning of every home search with every buyer, I tell them not to wait to write an offer if they have fallen in love with a home. The market is hot, and so are the offers. We are currently in a sellers market, which simply means, there are more buyers then there is inventory. Homes are flying off the market as soon as they came on. I’ve seen buyers express their love for a home, but would really like to “sleep on it”. The disclaimer to this is that the home you’re sleeping on, is the home someone is submitting an offer for. Don’t be surprised if that home is under contract when you awake from your beauty rest. It’s a mean-mean world in this real estate market. If you like it then you should submit an offer on it.
HAVE FUN
Yes, I said it – HAVE FUN! Purchasing your first home is the beginning of a life full of precious memories. Your new home is where you may see your kids off to kindergarten, prom and maybe even college. It may be your bachelor pad where one day your new spouse will move-in and complain about your choice or decor and paint color. It may even become an heirloom where memories are passed down from generation to generation. Whatever the case, start the journey with a good time. Laugh, smile and enjoy the moment.
Happy Buying!
Rishawn Boone, Realtor®
630-723-4163 (mobile)
815-730-1199 ext 1618 (office)
rboone@c21affiliated.com
