5 Things To Know Before Buying A House
1. Use A Great Realtor
Working with a good realtor won’t cost you a cent and can make the process of buying a home that much easier. Keep in mind that if you plan to purchase a home without representation, the listing agent (agent selling the home) will not protect your best interests as their loyalty is to the seller. Since the seller pays out the commission on both the selling and buying side, you won’t be saving yourself any money, but you will be giving the listing agent a nice bonus. A savvy realtor will look out for your best interests, while guiding and supporting you through the buying process, they are also there to negotiate on your behalf, assist in interpreting home inspections and ensure all contracts are executed accurately.
2. Interest Rates Are Still at Record Lows
The 30 year fixed-rate home loan is now under 3% for a primary residence. Taking advantage of these phenomenal rates could end up saving you hundreds of thousands of dollars over the life of your mortgage. As great as these rates are, this trend will not last forever and it is in your best interest to take advantage of them while you still can.
3. Look Beyond the Surface
Many cosmetic fixes can be done with little effort and expense. Walls can be painted and fixtures changed so they needn’t become deal breakers. Bigger projects, such as kitchen remodels and bathrooms can quickly add up and you will need to take this into consideration. Ensure that making these changes will allow you to stay within budget as well as on your timeline. Consult with some contractors during your option period to get an accurate estimate on what these updates would cost so you do not end up underestimating these costs. Take into consideration that cosmetic updates can also be done in segments. Taking one project on at a time save money as well as headaches.
4. Buy the Home You Can Truly Afford
Keep in mind that this may be a different number than what your lender gives you. Being approved for a certain amount does not mean that you are required to purchase a home at that price. Buying a home below budget will not only keep you sane, it will allow you to live comfortably. Lenders can advise different percentages of income for determining what you can afford. Have an honest conversation with them and yourself so you can go into your purchase feeling confident and reassured.
5. Purchase Price Isn’t Everything
When beginning your search, do not forget to take into account all the additional expenses that come with buying a home. This includes insurance, HOA fees, taxes, option money and earnest money. IF you are looking to do some updating you will have to incorporate those amounts into your budget as well. Also, don’t forget to DO THE MATH. A lower priced condo may end up being more costly than a higher priced one when you take into account the HOA fees and property taxes. Location and amenities will determine how expensive each of these items can be and are often overlooked. Always look at all expenses when making a decision about purchasing a property.