Best-Kept Secrets for Buying a Home

Secret #9: Keep Your Money Where It Is

Three to six months before buying a new home, it’s not wise to make any huge purchases or move your money. You don’t want to take any big chances with your credit profile. You want lenders to see you as reliable and you will need a paper trail to get the best loan possible.

Secret #8: Get Pre-Approved for Your Home Loan

There is a big difference between a buyer who has a pre-approved mortgage and a buyer being pre-qualified. Anyone can get pre-qualified, getting pre-approved means a lender looked at your financial information and let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy and gives you the opportunity to shop around for the best deal.

Secret #7: Avoid a Border Dispute

Getting a survey done on your property so you know exactly what you’re buying is essential. This also will help to save yourself from future disputes with your neighbors. Property tax is likely based on how much property you have, so having an accurate map drawn up is best.

Secret #6: Don’t Try to Time the Market

Don’t get caught up trying to time the market to figure out when is the best time to buy. It is impossible to anticipate the housing market, the best time to buy is when you find your perfect house and you can afford it.

Secret #5: Bigger Isn’t Always Better

Even though everyone’s drawn to the biggest, most beautiful house on the block; bigger is usually not better. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to sell it in the future.

Secret #4: You’re Buying a House – Not Dating It

Buying a house based on emotions is just going to break your heart. Pretty bad financial decisions can be made if you fall in love with something. There is a big difference between instincts and emotions. Instincts would mean you’re getting a great house for a good value, emotions are being obsessed with the paint color or the backyard. Stay calm, be wise and remember it is an investment.

Secret #3: Give Your House a Physical

Just like you wouldn’t buy a car without looking under the hood, hire a home inspector to check out your home. The inspector’s sole responsibility is to provide information to you, so you can decide to buy the house or not. If they find any issues in the home, you can use it as a bargaining tool for lowering the price of the home.

Secret #2: The Secret Science of Bidding

Your opening bid should be based on two things: what you really believe the property is worth, and what you can afford. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller.

Secret #1: Stalk the Neighborhood

Before you buy, get the lay of the land. Drop by morning, noon and night to see what’s happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with daily. Research the schools, even if you don’t have kids, and find out where the grocery store is and other services are, just to make sure you have everything you need.