|
|
|
A Smooth Home Purchase in Six Steps
|
|
1. Check your credit. Reviewing your credit report allows you to fix any errors and notify lenders of blemishes, improving your chances of being granted credit.
2. Get pre-approved. A pre-approved loan status tells you how much you are eligible to borrow and notifies sellers that you are a serious buyer.
3. Find a buyer's agent. Work directly with a buyer's agent to guarantee yourself the best price!
4. Research the neighborhood. Investigate the area's property values, schools, crime rates, amenities, and neighbors to ensure a comfortable transition for you and your family.
5. Educate yourself. Before you sign your name on that dotted line, carefully read and review all of the documents and information to make sure you understand your new obligations.
6. Have reasonable expectations. No house is perfect. A lot of your money is at stake. Accepting these factors will remove some of the difficulty in finding and buying your new home.
|
As you look at homes, use the 85% Rule.
Here's how it works: make a list of desired "wish list" items and those "real need" criteria before you even start your search. As you look at various houses, when you find a property that has at least 85% of what you are looking for, consider that one a strong candidate. Remember: don't let emotion sway you to homes that don't have what you are looking for!
While you may not find a home with 100% of the list, you'll discover you won't have to compromise too much with a home that meets 85% of your needs. If you wait for the "perfect" home that has 100% of what you want, you may never find it!
|
How Not to Pay Too Much For a Home
|
|
01. Know w hat you want/need
02. Get pre-approved for a loan
03. Hire knowledgeable professionals you trust
04. Remain objective
05. Have the home professionally inspected
06. Recognize "red flags"
07. Educate yourself about the process, the seller, and the property
08. Consider your future plans
09. Move quickly
10. Don't reveal your personal information
11. Check all of the details
12. Negotiate
13. Avoid bidding wars
14. Request written disclosures and a Comparative Market Analysis (CMA)
15. Know the hidden costs/additional expenses
|
|
How to Shop: While it's a little more complex than shopping in a mall, some of the same principles exist. When searching for a new home, keep track of your favorites by zeroing in on your top three choices. Keeping these three as markers will help you to easily narrow down your selection by actively comparing all other viewed properties to your Top 3.
Using the Top 3 Rule will also help you determine where you are at in your decision process by how frequently (or infrequently) properties are being added/removed from your Top 3 list.
|
|
|