Tips On Tuesday; Buying A Home

Buying-home-house-keys-nki

Are you considering the purchase of a new home in the next few months?  Beside wanting to be the cleaning company you hire to keep up your new home, we also want to extend some of the best kept secrets you may not know about the journey to becoming a homeowner.

10.  Don’t Move Your Money

Anytime you’re considering the purchase of a house, you want to make sure you don’t move money around and spend large amounts 3-6 months before your purchase.  Lenders want to see that you are reliable and opening new credit cards, making large purchases or doing anything else that may show up on your credit report isn’t the best decision.

9.  Get Pre Approved For Your Home Loan

Did you know there’s a difference between being pre-qualified and pre-approved?   Getting pre-approved means that you have met with a lender and after evaluating all of your financial information, they will tell you how much you can afford and how much they will lend to you.  It’s very exciting to start looking at houses but it also can be heart breaking. Taking your time and taking your steps in the right order will save you time from looking at houses you may not be able to afford.

This will also give you time to shop around for the best deal, interest rates and look for any hidden costs in your loan.

8. Know What You’re Buying

Request to have a survey done of the house you want to make an offer on.  This is essential to know exactly what you’re buying.  A surveyor will tell you where your property line is and prevent any potential disputes with you and your future neighbors.  Also, property tax may be based on the property you have, so you will want an accurate map of what you’re buying.

7. Don’t Stress About When To Buy

It’s impossible to time the housing market – so the best time to buy is when you find your perfect house and can afford it.

Real estate is in constant change, going up and down and then back up.  You don’t want to miss out trying to play Double-Dutch with the market.

6. Size Doesn’t Always Matter

There’s an old adage in real estate that says don’t buy the biggest, best house on the block.  Big houses aren’t for everyone and when you go to re-sell, you don’t want to limit your potential buyers down the road. Remember that your home will only go up as much as the house down the road and if you have a $500,000 house and your neighbors home is $250,000 – your appreciation will be limited.  Sometimes it can even be best to buy the worse house on the block because it will trade for more per square foot than the biggest house.

5.  Budget Correctly

There’s more to home expenses than your mortgage.  When estimating your budget – consider expenses such as property taxes (which have the potential to be increased), utilities, home owners dues are all mandatory expenses.

Most people just focus on their mortgage payment, but you should also be aware of the other expenses such as property taxes, utilities and homeowner-association dues.  You will also need to be prepared to pay for repairs and maintenance on your new home.

4. Buying A House Is  Not Love

Yes, you should love your home, but you don’t want to make bad financial decisions based on emotions.  You want to trust your instincts when buying a home as they will lead you to getting a great house for a good value.  Making an emotional based decision is when you “Love” the backyard or paint scheme of the house.  You are making an investment so you want to be wise in this decision.

3. Hire A Home Inspector

Again, you want to know what you’re getting when purchasing a home.  For about $200 you could save yourself thousands in the long run by having a professional walk through the home to provide you with very detailed information.  With the correct information on the house, you can make a more informed decision and be confident.

If an inspector finds issues with the home, you can choose to continue your search or even use that information as a bargaining tool  when making your offer.

.2. Bidding Formula

 

When submitting your opening bid consider two things, what you can afford and what you believe the property is worth.  Make your opening bid fair without offending the seller.  Often times, people think they should start low but it’s important to know what the market is doing at the time of your offer.  What are other homes of comparable size and quality going for in the same neighborhood?  Look at the average cost per square foot in the same neighborhood and also find out if any of the neighbors have plans for new additions – consider things that could change your property value down the road.  You can also check with the boroughs office to find out if your seller is behind in property taxes – this can give you another bargaining tool.

When you’re ready to make an offer, bid an off number; nice round numbers will sound like every other bid.  By being more specific, the sellers will feel you have given a lot of consideration to your offer.

1. Get The Lay of the Land

Before buying ,  do your research.  Stop by morning, noon and night.  Sometimes buyers are so focused on the perfect home, they haven’t noticed the neighborhood.  You don’t want to find out the neighborhood isn’t for you after you buy your home.

Time the drive from the house to where you commute to during the day, how far is the nearest grocery store, schools, your work and other services.  Even if you don’t have children, research the schools because it does affect the value of your home when looking at a good school district versus a bad school district.  This can affect the value of your home as much as 20%.

 

When staring the exciting journey of becoming a homeowner, consider Maid Marvelous in the clean out of your current home as well as setting up cleaning service to maintain the beauty of your new home!

 

 

 

 

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