Home Purchase Guidelines
Buying a home can be perplexing to the most experienced buyers due to real estate market fluctuations and lending policy shifts. When you buy a home, you should focus on more than simply price. The information that follows will provide some guidance and understanding prior to making a major financial commitment on real estate.
Prior to Making Your Purchase
Many people believe they can buy a home with a minimal down payment but you should make every effort to have the highest down payment possible. When you place a larger amount down on your purchase, you will pay less money out over the life of your mortgage. Mortgage Interest, regardless of how low the rates are at the time of purchase, will remain with you for the term of your mortgage. Pay more now if possible so you pay less later.
Facilitate the purchase process by applying for a preapproval letter from your mortgage company. Andrea can arrange a consultation with a mortgage professional if you need one. When your agent presents an offer on a home and you are already approved for a mortgage, the seller may accept your offer more readily. Preapproval also means you now know what you can pay for your home so your search becomes narrower.
When you find an area that appeals to you, it would be beneficial if you observed the community at different times in the A.M. and P.M. If you like what you see of the neighborhood during these hours you are one-step closer to making an informed decision. Take a walk through the vicinity and speak with area residents who are outdoors, casually asking them questions about living there. You could also talk to local business owners and even renters will give an unbiased opinion.
Only if your home purchase is being made based on its current as-is condition should you ever pass on a property inspection and even then, it can be a mistake. A skilled home inspector can save you thousands of dollars in future repairs or simply provide some insight that can be used during negotiations by your REALTOR®. Andrea would be happy to provide a list of a few home inspectors from which you can make your choice.
Time to Make an Offer
It is never wise to make an offer on the first home that you view – even if you are over the moon in love with it. Tour a couple more homes before you make your decision, you will confirm your instincts about the home that appealed so much to you, and making an offer will feel right. Most REALTORS® will want to show you at least three homes, confident that one of them will be the right property for you.
When you find the perfect home, you should not hesitate in putting your offer on paper and having your agent present it quickly. Your REALTOR® will assist you with an offer that has the optimum chance for success. Remember, your real estate agent knows home values – so allow them to offer their expert input. Their knowledge will increase the chance your offer will be accepted and for the best price.
It is best that you are never pressured into a home purchase. You are the best judge of when a home is right for you. Potentially this home could be your residence for many years so you need to be pleased with your choice. Ask yourself if you can be happy in this home for up to five years. This is the estimated time it can take to increase your home equity; avoiding any future financial setbacks. For A Home Buying Consultation With No Obligation, Call Andrea Now!
Andrea Clendening, REALTOR® | Re/Max Twin City Realty Inc., Brokerage | Email or PH: 519-771-0886