Real Estate buying tips
Whether you are a home buyer, seller or renter (tenant) it pays to know the right things to do and when and how to do them. Some may call this "inside information"; To others it may be "tips" or "secrets". We just call it knowing the facts about real estate buying.
Buying a home is the largest and most important purchase in the lives of most people. However, far too many want to treat it like shopping for new clothes - drop by the shops on your lunch hour, get excited about the suit in the window, put it on your credit card. What may work for your wardrobe is often a disaster with a home purchase.
The smart home buyer makes a conscious decision and commitment to buy, plans carefully and deals with financing issues first, allocates adequate time off from work to look, keeps emotions in check, listens to the advice of a professional real estate agent like Lyall and Scott Property.
Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.
Get Pre-Approved for Your Home Loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: and make sure there aren’t any hidden costs in the loan.
Don’t Try to Time the Market
Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.
Bigger Isn’t Always Better
Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbour’s pay $250,000 to $300,000, your appreciation is going to be limited.
You’re buying a house – Not going out with it
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint colour or the backyard. It’s an investment, so stay calm and be wise.
Check out the suburb
Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighbourhood wasn’t for them. Find out how far it is to the nearest grocery store and other services. Even if you don’t have kids, research the schools because it affects the value of your home in a very big way. If you buy a house in a good school district versus bad school district even in the same town, the value can be affected as much as 20 percent.
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