For most people, buying a house is one of the most complex financial transactions they will ever make. Anthony Group states, “What many don’t realize is that buying a house can be greatly simplified with some basic preparations and that simplifying the process can save a great deal of money in both the short term and over the life of the mortgage.”
You Can Pre-Qualify
Any home buyer is eligible to pre-qualify for a loan. This is a vitally important part of the home buying process because it allows the home buyer to separate borrowing money from buying property. Because those are two different financial transactions, they each deserve enough focus and time to get right. When they combine, there is a much higher chance something important may be overlooked, and that might increase your costs.
Good Deals Start with “No”
Negotiations are based on the ability to refuse. If you are not able to get up and walk away, you’re not negotiating. You’re being coerced. Learn to negotiate before you end up in a weak situation with hundreds of thousands of dollars of your money on the table. You know how hard you will have to work to earn that money back, so you also know the price of a bad deal.
Save for Closing Costs Too
Forgetting to cover your closing costs when saving for a down payment can often be the difference between a new home and another six months of waiting. While it is possible to have the seller cover a portion of these costs, it is always best to make sure you have enough room in your down payment fund to cover both. Even if the extra isn’t needed, you won’t get stranded by coming up short and missing out on your dream home.
Don’t Bank on Moving Again Soon
Fast home sales are no longer as common as they used to be. Understand that the practice of buying a home that isn’t quite what you want because you have the luxury of flipping it for a quick profit in a few months so you can get the house you really wanted is no longer a sure thing. If you gamble and lose, you might end up living in a place you don’t like longer than you want. Take your time and buy the right house on the first try.
Seek Professional Advice
There is no reason you have to go it alone. Find a good real estate attorney and have them recommend an agent and a mortgage broker or financial advisor. Spend some time with them before you start looking, and you may find they bring you options you might not have otherwise had.
With enough preparation, buying a home can be a thrilling and successful experience. Make sure you take the time and cover all the bases, and you’ll achieve your goal.
Buying a house is one of the biggest purchases you will make. Consider these five things when buying a home for the first time.
