• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

51 Tips Before you Buy a Home

October 1, 2012 9 Comments

Share this:

  • Tweet
  • Email

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.

Buying home

 

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.

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« Black Friday Deal or No Deal? Think about it
10 Low Cost Halloween Costume Ideas »

Comments

  1. [email protected]&More says

    October 1, 2012 at 1:12 PM

    My number one tip is to buy much less home than you can afford. We did and it is helping us reach our other goals so much faster as we have a lot of extra money to put toward paying down my girlfriend’s student loans now.

    Reply
  2. Canadianbudgetbinder says

    October 1, 2012 at 3:31 PM

    WOW, now that’s quite the list but a list that any first time home buyer can learn something from. Cheers Mr.CBB

    Reply
  3. Miss T @ Prairie Eco-Thrifter says

    October 1, 2012 at 3:57 PM

    Awesome list. I think this should be given to any prospective home buyer. I would have to agree with Lance. Don’t by more house than you can manage. Houses take work and maintenance and they cost every year in addition to your mortgage. You have to make sure you can handle this financially.

    Reply
  4. Pauline says

    October 2, 2012 at 6:48 AM

    I am currently shopping for a new home and what I try to look for is possible extensions. Be it kids, tenants, an art studio, surely sometime you will need more space and if you can revamp your basement or loft for that, you won’t have to move. I also like to think that I can offset part of my mortgage by renting my extra space.

    Reply
  5. Tie the Money Knot says

    October 2, 2012 at 9:58 PM

    This is a nice comprehensive list of tips. Buying a home involves far more considerations than I think most first time buyers realize. It’s a big commitment, and not a liquid asset as many seemed to think during the real estate bubble.

    Reply
  6. FI Fighter says

    October 3, 2012 at 1:41 AM

    In a hot market, one good strategy to guarantee a win is to overpay and then use the appraisal to lower the final cost. Chances are very good that the appraisal will come in much lower than the purchase price since comps always lag by a few months. Once you’ve gotten this far, chances are the other party will be very eager to complete the deal, even if it means coming back down substantially in price. But make sure to keep the appraisal contingency so that you can back out, just in case.

    This strategy just basically helps you get a ticket to the dance.

    Reply
  7. Parvinder says

    October 3, 2012 at 3:04 AM

    Interesting list. These tips can help many home buyers to make a better decision. First time home buyer can learn a lot from this list.

    Reply
  8. NJFCU says

    October 5, 2012 at 1:41 PM

    Fantastic! There’s a lot of things in this list that I, myself, haven’t thought to consider before. Example for item no. 45 – “Request for repairs to the home before offering your price,” this would actually save both your money and time. Thank you for sharing this To Do’s!

    Reply
  9. Mary-Lee Henson says

    November 8, 2012 at 1:57 PM

    My newlywed husband and I were looking for a elegant, tropical home in the Ocean Reef Community, to start our new beginning. We looked everywhere but couldn’t find the perfect home for us. Then a colleague suggested Bob Ecuyer, we gave him a try, and he found us a breathtaking oceanfront home. Bob was so professional and knowledgeable of the community. You can find him at http://www.swensonrealty.com or call (305) 367-3600.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media