5 Home Buying Secrets Most People Don’t Know About

5 Home Buying Secrets Most People Don’t Know About – Few experiences in life rival the unbridled joy of finally holding the jingling keys to your home. But, as any experienced homeowner knows, that excitement quickly turns sour if you haven’t done your due diligence. Making huge purchases or moving your money around three to six months before buying a new home is not wise. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable, and they want a complete paper trail so that they can get you the best loan possible

Home Buying Secret #1

There’s a big difference between a buyer being pre-qualified and a buyer with a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and has let you know how much you can afford and how much they will lend you.

Being pre-approved will save you a lot of time and energy, so you are not running around looking at houses you can’t afford. It also gives you the opportunity to shop around for the best deal and the best interest rates.

Don’t obsess with trying to time the market and determine the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and can afford it. Real estate is cyclical, it goes up, and it goes down, and it goes back up again.

Home Buying Secret #2

Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to homes. There’s an adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a small audience, and you never want to limit potential buyers when re-selling.

Home Buying Secret #3

The difference between renting and homeownership is the sleeper costs. Most people focus on their mortgage payments but must be aware of other expenses such as property taxes, utilities, and homeowner association dues.

New homeowners must also be prepared to pay for repairs, maintenance, and potential property-tax increases. Ensure you budget for sleeper costs so you’ll be covered and not risk losing your house.

Home Buying Secret #4

Buying a house based on emotions is just going to break your heart. You might make bad financial decisions if you fall in love with something. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.

Home Buying Secret #5

Your opening bid should be based on what you can afford and what you believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to offend the seller. A lot of people think they should lower the first time they make a bid. It all depends on what the market is doing at the time.

It would be best to look at what other homes have gone for in that neighborhood, and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors plan to add a new addition or a basketball or tennis court, which might detract from the property’s value down the road.

Sellers respect a bid that is an oddball number and is more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific, the sellers will think you’ve given the offer careful thought. Lean on your trusted realtor to walk you through the process and help you find your dream home.