Buying a new home is never easy, especially for new homeowners. However, there are plenty of ways you can make it easier on yourself and make sense of the home buying process. Below, are our top nine tips you should always consider when buying a new home.
1. Get Preapproved
Buying a house isn’t the easiest process. It takes a lot of paperwork and the approval process to get a mortgage can take quite a lot of effort. You’ll need various debt info, bank statements, W-2’s and 1099’s, in addition to other personal information. So, it’s important that you have all the required paperwork before meeting with your bank, to make your preapproval process as smooth as possible.
2. Choose the Right Realtor
You don’t necessarily want to pick a realtor willy-nilly. It’s crucial that you choose one that will want to work with you and understands what kind of home you’re looking for. While you’re searching for the right realtor, also make sure that you pick one in your preferred area to choose the right one.
3. Ask Plenty of Questions
Buying a home, especially if it’s your first time, can be an incredibly confusing process. Asking questions can be your best option to sorting through your confusion and making sense of the whole ordeal. Never be afraid of asking too many questions, no matter how obvious you may think the answer is.
4. Make a List of Necessities
It’s important that you buy a home you’re going to like. There’s no point to bidding on a home that you either don’t like or doesn’t have the necessities you need in a property. You should write down a complete list of all the necessities you require in a house and hand it off to your real estate agent so they can find the property that best fits your needs.
5. Look in Areas That Have High Real Estate Options
There’s no doubt that people are looking for the best property on the market, such as nearby transportation, good school systems, etc. However, one of the easiest ways to land a home quicker and easier is to look in areas that have higher real estate inventory. This way, you have a wide variety of choices to pick from at competitive prices. Not to mention, this can make finding a home that fits all your needs a whole lot easier than trying to find your dream home in an area with a scarce population of real estate.
6. Find Houses That Have Been on the Market for a While
If a house has been on the market for a long time, the seller will likely be more motivated to sell and close the deal quickly. Ask your realtor to find homes that have been for sale for a long time compared to other homes in the area. In some neighborhoods this could be a month, in others, it could be a year.
7. Sell Before You Buy
Selling your old home at the same time you are buying a new one can seriously slow down the entire home buying process. A contingency sale can add a lot of unnecessary stress to an already stressful situation. By selling your home ahead of time, you can start your house hunt on the right foot. Additionally, this will give you a lot of equity in the bank and offer you flexibility in your closing date. Both of these factors give you a competitive edge over other buyers. On the downside, you may need to keep your things in a storage unit and live in a rental for a few months while you find your new home.
8. Gather Your Paperwork
Even after you get pre-approved for a mortgage, you will still need to provide quite a bit of paperwork. Be sure you gather everything you need ahead of time. This can include bank statements, paystubs, and letter explaining strange expenses. Remember, the more documentation you have, the better you will be and the faster you can close the deal. Often, sales get held up because of a lack of paperwork or preparedness. Even one mistake can push back the closing process so double check everything.
9. Don’t Alert the Seller to Your Rush
When you are trying to buy a house on a deadline, do not tell the seller that you are desperate to close the deal. This puts you at a serious disadvantage in negotiations.
