10 Home-Buying Secrets Revealed!

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10 Home-Buying Secrets Revealed!

Buying a home isn’t like picking out an item that’s on sale from the grocery store. A home is perhaps the most expensive thing you will buy in your lifetime, and you may have to go into debt for decades to pay for this purchase completely. This means that you need to make sure that you get the most out of your money.

Fortunately for you, these tips should help make sure you get your money’s worth:

1. Buy a house when it’s the right time for you. This means you have found the home you really want to live in, and you can finally afford to cover the 20% down payment and the monthly mortgage payments for many years to come.

The right time doesn’t depend on the conditions of the housing market. If even the real estate pros can make mistakes regard the housing market, then don’t think you can do any better. So don’t wait for the best buyer’s market.

2. Don’t make major purchases before buying a house. For 3 to 6 months before you buy the house, don’t get into more debt. Don’t buy a car or even a major appliance or furniture. Your potential mortgage lenders want to see evidence of your financial maturity, and buying something luxurious right before buying a home doesn’t demonstrate good financial sense. Instead, see if you can lower your debt so you can improve your credit score.

3. Get pre-approved for the mortgage. This is not the same as getting prequalified. Getting pre-approved means that you’re definitely able to swing a certain amount of money for the home because the bank has already checked your financial information. By getting pre-approved, you know what kind of house you can afford. You also get ahead with the home-sellers, who generally prefer to deal only with pre-approved buyers. They’d rather not waste time with buyers who are eventually disapproved for a mortgage.

4. Get a survey done. The survey specifies the extent of the property you’re buying. This helps you know exactly how much you will pay in property taxes when the property becomes yours. In addition, the information can help prevent a potential boundary dispute with your neighbors.

5. Know the total cost of the house. Aside from the property taxes we’ve already mentioned, you should do some research on how much you will have to pay for utilities and repairs. Add the homeowner-association dues and the home insurance too. You must take all these into account so that you’re confident you can cover all your bills when you finally own the home. Remember, if you can’t cover these bills then you can end up losing your home and your money.

6. Buy a home logically. As this will be the most expensive thing you’ll ever buy, you need to make sure that you’re buying a particular home for good reasons. You shouldn’t buy a home because it has a pretty color for the walls or because you just love the design of the flooring.

Of course, you should love and be excited with your home. But you also need to realize that you’re getting a home that provides good value for your money. So don’t just base your buying decisions on your emotions.

7. Check out the neighborhood. The house may be perfect for you until you realize that the neighborhood isn’t suited for your needs. This is why you should drop in at various times of the day to see what the area is like at any time. It may seem like a great place in the morning, but in the evening it may be unsafe.

Also, see if the services you require such as grocery stores are conveniently located nearby. It’s also important that you pick a neighborhood with good schools nearby. That may seem irrelevant to you if you don’t have kids, but you may have them in the future. Even if you have never have kids, you may end up selling your home in the future and having your home in a good school district will attract more families and higher prices.

8. Don’t go for the biggest home on the block. Yes, having the biggest house in the area gives you prestige. But when you need to resell your home, having such a large home will limit your number of potential buyers. The house will also not go up in value as well as the other homes. So just get the house in a size that suits your needs.

9. Hire a home inspector. This is one of the best investments you’ll ever make during the home-buying process. It only costs a couple of hundred dollars, but it can potentially save you thousands. The home inspector will check out the home fully for any issues so that you will know what kind of repairs you will need to do afterward to get it into tiptop shape. The home inspector will things that you can never hope to find for yourself.

By having this information, you will then be prepared for the expenses that will follow once you take up ownership of the home. In addition, the issues found by the home inspector can help you negotiate for a lower price for the home.

10. Bid for the home correctly. Your bid needs to be based on what you can afford and what you think the house is worth. You can’t start with an extremely lowball bid, because you will just offend the homeowner. Even your first bid should be reasonable.

You may want to bid by basing your numbers on a price per square foot basis. This gives you an irregular price bid, which will be in stark contrast with the round numbers offered by the other bidders.

11. Purchase an Armor Home WarrantyCongratulations! When you close on your home, be sure to purchase an Armor Home Warranty to save on future home repairs that you’ll eventually are be going to need. Learn more about home warranties

See if the seller has paid their property taxes by checking with the county clerk’s office. Doing this gives you more leverage when you’re negotiating the price of the property.

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