Buying a home can be a challenging process. There may be hoops to jump through and possible delays. However, by following these tips you will gain an edge in the process to closing in on that dream home.
Getting pre-approval is the key to the foundation of the home buying process. It reduces the pressure on affordability and gives you a sense of security in knowing that you are more likely to close on the home with your available financial information.
2. Consider Appreciation
Take an observation of the surrounding neighborhood and any comparable homes to consider the future value of the home. Real estate move in cycles and local cycles may fluctuate more rapidly in short term periods. Buying a home that will go up in value is important.
3. Equity Loan Conversion
Credit card debts often have high interest rates. Homes with good equity already available can help reduce this debt.
4. Consider All Loan Options
Doing research ahead of time on specific loan applications such as FHA or VA loans can reduce unexpected fees later
5. Try to Aim for a 20% Down Payment
A larger down payment can sometimes drastically reduce fees. It can also reduce the chance of getting that dreaded private mortgage insurance that may lock in for the life of the loan. A higher down payment may also lock in a lower interest rate on conventional mortgage loans.
6. Tax Benefits
There are many tax benefits available in homeownership. Some of these may be related to energy credits or home improvements as well.
7. Sweat Equity
Home improvements on a foreclosure or a home that needs a little sprucing up can be an excellent equity booster in booming or upcoming neighborhoods.
8. Keep a Balance in Choices
Keeping a pro and con list for home choices as well as some variety in home style and neighborhood will help make an educated guess. This will help reduce any buyer's remorse.
9. Inspect Thoroughly
Inspections are critical when buying a home. You should be detailed and note any major modifications to the home. A thorough inspection has a better chance of closing the loan for the bank and reducing the risk of a bad investment.
10. Stay Contingent with Milestones
Real estate contract contingencies are for both the buyer and seller. It protects you from making a poor decision from an inspection and reduces the chance of a buyer from backing out prematurely.