Buying a home is a complex process with many different variables, but you don’t have to go through it alone. Find out the most important things you need to know before you get started so you can set yourself up for success.
It often pays to shop around for a mortgage lender
Don’t feel compelled to accept any offer just because it’s from a bank you’re loyal to, or you’re afraid of getting too many inquiries on your credit report. When shopping for a mortgage or auto loan, FICO typically groups several inquiries together as one during a two-week period, and even small reductions in an interest rate can save you thousands of dollars over the life of a 30-year loan.
The inspection is one of the most important steps in the process
Some buyers make the mistake of treating the inspection like a formality, but this is one area where it’s important to find an experienced and trustworthy inspector who will perform true due diligence. You may discover things about your potential new home that you can negotiate with the seller, or that turn you away completely from the purchase.
You need to budget for more than the mortgage cost
It’s tempting to budget for a home purchase by taking an average interest rate and applying that to your desired monthly payment to come up with a purchase price. However, this fails to account for many of the unexpected costs of home buying and ownership, including closing costs, property taxes, and moving costs. Make sure you are budgeting for costs well beyond your new mortgage payment.
Don’t be scared of some cosmetic repairs
Many prospective buyers turn down a good home for a decent price because of cosmetic flaws. If a home has no serious structural issues, don’t automatically pass on it because of some repairs that you can complete yourself with some DIY advice.
It’s normal to second guess yourself
Buying a home is a big decision, so you’re going to have times where you question your decisions. When this happens, remember to take a step back and go over the pros and cons of your choices again to remind yourself why you are in this process.
Take whatever time you need to make the right decision for you
Some of the best advice you can get is not to rush yourself because you won’t be able to easily change things once a deal is done.
You should always ask questions
Many people get surprised later because they fail to ask the appropriate questions during their search, largely because they don’t want to offend anyone or ruffle feathers. You are going to be the one on the hook for the mortgage and living in the home, so there’s nothing wrong with finding out as much info as you can before making a decision. Any agent or seller who resents you asking vital questions is one you can pass on.
At The Parker Group, we’re here to answer every question you have about buying a home and expertly guide you through the process so you can make an informed decision. Reach out to one of our agents today to find out how you can get started on your home buying journey today.