51 Tips Before you Buy a Home

Everyone wants to own a home and live in it for a long time. A home is an investment, which many people will pay for in spans of years.

The choices you make when buying it will determine if you will get what you want or not.

We are about to enter the home buying market and we have prepared for your house hunt. This list contains facts and pointers extended by our friends and family who went through the home buying experience themselves. Hope the To Do’s are going to help you in your effort as well.

51 Tips for a new home buyer

1. Buying only when you are prepared to live in it. If you will have moved in a year or two, maybe you shouldn’t buy it. even if you are thinking that you will sell it  as the markets are rising, the transaction costs could have you spending much more than you expected
2. Clean up your credit history before applying for a mortgage
3. Get a home you can afford-don’t think that since you can pay for it for a long time you can get a palatial home on the beach when you cannot afford it.
4. Buy a home you can live comfortably in
5. You do not have to have 20% of the down payment to qualify for a loan
6. There are lenders who will loan you the amount you need to own a home on a down payment as small as 3%
7. The location of a home matters-get a place where amenities like hospitals and schools are close
8. Use a professional agent if you are inexperienced in buying a home-he will also help you bid for a good price
9. Consider points and rates when choosing a mortgage as you will save a lot of money in the long run
10. Get a pre-approval from a lender before house hunting-then you will be able to know the homes you can afford
11. Bid for a home according to the market trend; meaning the value of the homes in the neighborhood-so do your homework
12. Get a home inspector to point out issues with the home that could cost you a lot more in the long run
13. Get your finances in order and improve your credit ratings
14.  Consider the floor plan of the house
15. Research on good lenders who will give you the right mortgage with the interest rates
16. Check out the rates in the real estate market you want to invest in
17. Check out what kind of house it is, when it was built and consider the market value
18. Check out if there are deed restrictions in the house
19. Check out if the square footage is the one that you need
20. Ensure that you have a heating system that is efficient
21. The mechanics of making an offer will depend on where you are located as real estate laws differ from one state to the other so make sure you agent has considered all these
22. Don’t make last minute changes on the transaction details, ensure you are on top of happenings everyday
23. Check for home prospects online or with local agents
24. Make a decision only after you have toured several places
25. Prepare a budget and keep in mind taxes, insurance fees etc as well as the mortgage-you will know if you can or cannot pay for the home
26. Before signing the contract, you should have a clause that allows for an inspector to come and inspect the property
27. Do not sign the contract without having the clauses inspected by your attorney or any agent representing you
28. Ensure that all your interests have been taken care of by the contract
29. Use an agent to buy the home, don’t do it yourself as you could lose a lot.
30. You may not need an agent if you do not want to, but if you want to save time and money, get yourself one, Hire an Agent
31. Agents have the advantage of knowing the market, some will preview the homes for you
32. You will get advice from agents on which homes are overpriced and so you will be able to make a reasonable offer
33. An agent is aware of which listings are new and which ones are yet to come
34.  The professional advice of an agent cannot be underestimated.
35. Check out several homes at a time, you don’t want to buy one and see a better one
36. Take a month or so to check out homes before deciding
37. Getting a loan approval in advance will help you know the range or price of homes you want to buy.
38. Compare the different kinds of mortgage plans that the bank can give you before getting one for yourself
39. Choose a financier by asking for a reference from a mortgage broker
40. If you are buying a foreclosure, some institutions will give you loans, some may decline
41. The sale price for a home doesn’t mean the house will sell for that price, so don’t compare sale prices.
42. Comparable sale rates are more reliable, because you will know the average price for a home in the area.
43. Inspect the home before offering the price
44. Your inspection will determine the value of a home and what price you will offer for it.
45. Request for repairs to the home before offering your price
46. Lenders will determine your mortgage rates depending on your credit score, if its anything above 720 you will pay low interest rates.
47. You will not get a mortgage if your credit score is below 620.
48. Ensure that you spend 30% of your monthly income on repayment so that you can stay afloat
49. Save for your home to be comfortable with a higher house payment
50. Check out the varieties of home loans before deciding
51. Choose a neighborhood that fits all your needs before buying a home.

Readers, let us know if you want to extend some more helpful hints towards other readers. Feel free to state your opinions on home buying as well.