When you have finally saved up enough for a downpayment for a new house, you may be thrilled about the possibility of home ownership and eager to start your search. However, the process of searching for and selecting the home you'll live in for years can soon become overwhelming. Here are actions you can take to make smart choices throughout the process.
Seek Out a Fair Mortgage
Looking at different homes for sale is fun, but before you even contact a realtor, you need to be certain that you have the financing for a house settled. That way, you won't adore a home only to find out you are unable to get a mortgage approval for it. Shop for low interest rates and favorable terms with different mortgage lenders until you get a deal you are satisfied with. You'll feel a sense of relief when you finally start seeing homes and are confident that you can afford them. Sellers will also be pleased if you are pre-approved, as the sale will go through more rapidly.
Have the House Inspected
Discovering that a house needs a list of repairs that you weren't expecting can be expensive and stressful. While the seller is likely to disclose problems with the house before you buy it, if you want to be confident that the home is in good condition, you may want to enlist the help of a home inspector. The inspector will take a look at the entire structure and give you a report about what needs to be fixed right away and what might turn into a problem down the road.
The information from the inspector can help you in a number of ways. If you are still interested in the house, you can ask the seller to knock down the price a bit. You can also put a plan in place now to save for repairs you know you'll need.
Find Out about Other Local Sales
When you've finally chosen a particular home and want to place an offer, it's important to do everything you can to ensure that the price you are offering to pay is fair and that you aren't overpaying if that offer is accepted. Ask your real estate agent to find comparable sales of houses in the area to see what they sold for. Some adjustments might have to be made for different amenities and features when comparing your future house to others, but you'll get an idea of what other buyers have paid. You might want to even have an appraiser give you some idea of what the house is worth so you can feel comfortable that your investment is a sound one.
Take the actions above to avoid problems and feel good about the home you buy. Get additional buying pointers from your realtor.