Tips for Buying
a Home by Jonathan Lammers
Buying a home can be a rewarding life experience,
as well as a great investment. But having a successful
purchase requires some education and research.
For first time homebuyers especially, you'll save
yourself a lot of frustration--and maybe even
money--if you start with a few simple steps.
| Summary Points |
| 1. |
Be honest about your housing needs, and
find a real estate agent
to guide you through the
process.
|
| 2. |
Assess you finances and meet with several
lenders to find the right
loan.
|
| 3. |
Research neighborhoods carefully, and make
sure to have the house
professionally inspected.
|
| 4. |
Use contingencies as a negotiation tool,
and don't forget to budget
for closing costs.
|
|
|
Know What You Need
The first step is being honest about your needs
versus your wants. For example, you may dream
of having a big backyard for gardening. But if
you have a busy schedule, a low-maintenance townhouse
probably makes more sense. You also have to think
about the long term. Will the house still meet
your needs--or your family's needs--5 years from
now?
Find a Real Estate Agent
A real estate agent can pre-qualify you for a
loan, answer questions about neighborhoods, recommend
lenders and even coordinate the closing--all while
saving you time and money. To find the right agent,
look for someone who makes you feel comfortable
and listens to your needs. You also want to find
a professional who knows the community and current
market. Top agents, like those who advertise in
Homes & Land Magazine, are great resources
for information about their area.
Crunch the Numbers
It's extremely important to have a clear idea
of your financial situation before you start looking
for a home. Not only will this help you set a
budget, but financial records will come in handy
when you start shopping for a loan. Make sure
to talk with several lenders before making a decision.
While interest rates and closing costs are important
considerations, you also want to your lender to
explain things in a way you can understand and
make time for your questions.
Compare Neighborhoods
Focus on areas that meet your needs, budget and
personal taste. Factors to pay special attention
to include convenient access to transportation,
employment, schools and stores. The right neighborhood
should also make you feel safe, offer recreational
opportunities, and have adequate police and fire
protection. To help find your ideal location,
consult with your real estate agent and try speaking
with residents in the neighborhood to learn more
information.
Inspect Houses Carefully
During any house showing, be alert for signs of
structural weakness, water damage, pest infestations
or other things that just don't "look" right.
Conversely, don't overlook an otherwise suitable
home just because it has cosmetic problems like
outdated carpet or a bad paint job. Most importantly,
never purchase a home without first having it
thoroughly examined by a professional home inspector.
| 10 Home Buying Mistakes You Should Avoid
|
- Working with an
agent who is unfamiliar
with the area, or
thinking that you
don't need to have
an agent
- Making an offer
without having a clear
idea of your budget
- Not shopping around
for the right loan
- Failing to research
the neighborhood beforehand
- Buying a house based
on its size, rather
than how well it fits
your needs
- Overlooking a good
home simply because
of cosmetic problems
- Not having a home
professionally inspected
- Thinking that price
is the only bargaining
chip
- Not reading the
fine print on the
purchase contract.
- Not budgeting enough
money for closing
costs.
|
|
|
Negotiation and Contingencies
Don't rely on price as your sole bargaining chip.
Contingencies may be written into the contract
to specify how certain aspects of the transaction
will be handled--everything from standard contingencies
like pest inspections, to contingencies for the
seller to leave the drapes or pay the buyer's
closing costs. Make sure any verbal agreements
are written into the contract and that you read
ALL the fine print before signing. If you have
questions, consult with your real estate agent
or real estate attorney.
The Closing
The closing represents the completion of the sale.
Be prepared to sign numerous documents as well
as pay funds for loan costs, property taxes, insurance
and other fees. Try and get a copy of the documents
prior to the close so you can contact the settlement
agent or escrow officer if any of the information
seems wrong or is unclear.
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