5 Tips for a Successful House-Hunting Experience
Posted by : Admin
There are lots of ways to describe the homebuyer experience. Exciting, scary, confusing, thrilling, frustrating, and sometimes even smooth are some words that come to mind.
Minimize the confusion and stress of buying a house by preparing for the journey in advance. Here are five pro tips for making sure your house-hunting experience is successful, and even enjoyable.
- Set a Realistic Budget
Buying a home you will enjoy living in — and one that you can afford — may seem like two different goals. But it’s possible to achieve both if you keep your budget grounded in reality.
Start by creating a budget based on your current payment obligations. Add in what you spend on gas, eating out, shopping, and anything else you spend your money on. Earmark the money you can use for a monthly mortgage payment, home repairs (because there will eventually be some of those), and home maintenance.
Once you’ve determined the payment you can handle, move to your savings. Have you started saving money to use as a down payment? If not, start socking away as much as you can. Depending on the loan program, you will need to pay between 3% and 20% of the home price down.
Setting a fact-based budget is essential to keep you from buying a home that’s too much to handle.
- Decide Where and What You Want in a Home
Take your budget and start applying it to the type of home and neighborhood you want. Unless you have unlimited income (almost nobody does), you’ll need to satisfy your most pressing needs first.
For example, is it important for you to live in a hot downtown neighborhood or a great school district? If so, you may need to accept you’ll have to go with a smaller home or yard to be able to afford those areas.
Pick the items that you can’t live without, whether it be a large kitchen, big fenced-in yard, or garage. Make a list of your must-haves and then a list of your nice-to-haves. Focus your attention on the properties that check the first list. The available amenities on the nice-to-have list can be a bonus if you land them, but don’t expect them.
- Arm Yourself With an Experienced Team
Finding professionals you can lean on and trust is critical during the house-hunting process. A real estate agent and loan originator are the two most important members of your homebuying team.
Your real estate agent will guide you from the beginning to the end of the process. Find one you connect with personally, who’s approachable, and who is knowledgeable about the neighborhoods you want to live in. Discuss your budget, timeframe, and your must-have list. Listen to their advice on how to find the home you want, and ask questions as you begin house hunting.
Your loan originator is another team MVP because they will land you the mortgage to pay for your new home. Ask friends, coworkers and your real estate agent for recommendations, and get pre-approved early in the process. Getting pre-approved saves you time down the road, plus it shows sellers you’re serious about buying a property.
A good loan originator will walk you through your mortgage options and explain the financial side of buying a house. They can help you figure out if the budget you set is realistic, too.
- Be Strategic While You’re Shopping
When you get into looking at and weighing houses’ amenities, appeal and drawbacks, be smart about your time. For example, use the internet to check the property out first. You can rule many places out without having to see them in person.
Second, don’t even peek at properties you can’t afford. Doing this will only make it difficult for you to appreciate the amenities offered by the homes that are within your budget.
Remember to keep your eyes and ears peeled during your in-person visit. Look how the house flows and imagine your family living there. Also, watch for signs of potential costly repairs like water damage.
- Stay Level-Headed During Negotiations
It’s hard to stay objective when you find a home you love, especially if you’ve been looking for a while. Don’t throw yourself on the seller’s mercy and agree to any terms just to win the bid. Take the time to talk with your agent and arrive at a reasonable offer.
Another thing to do is to get a home inspection. While you may THINK you’ll take the property you’ve fallen in love with, flaws and all, failing to get an inspection can set you up for enormous repair expenses in the future. Insist on a home inspection before closing.
Creating a house-hunting plan beforehand is a good way to stay focused on the type of property you want while also maintaining your budget. Follow these tips to turn house hunting into homeownership in no time.
