Buying a home is very exciting. Especially if it’s your first time to do it. At the outset, there’s really so many things to do and so many things to consider that it’s very easy to forget some things in the process. For example, if you’re looking at purchasing Chicago real estate and you begin looking around for Chicago homes for sale, it’s easy to get excited about a purchase especially if you find a house that looks exactly like how you envisioned your dream house to be like. However, it’s essential to step back a while and evaluate the home you want to purchase to make sure you’re making the right decision. Here are a few tips that you can keep in mind when shopping for a home.
1. Home shopping does not go first – It may be tempting to look at Raleigh homes for sale or homes in whatever area of interest for you, but home shopping doesn’t go first. If you already have a down payment saved up, you should sit down and figure out your expenses first. Knowing how much you can afford every month is important so that you can look for houses that are within your range. Some people end up going house-poor unintentionally, which means that almost all their monthly income (after paying off bills and debts) go to the amortization of the mortgage. While some people prefer to do this, unless you’re committed to it, this would be too much of a financial burden to you and your family.
2. Get pre-approved for a loan – Sometimes people mistake being pre-qualified for a loan as the same thing with being pre-approved for a loan. If you have your loan preapproved before you approach home sellers, you’ll have a better chance of getting ahead in home buying negotiations. This is because sellers will be more willing to negotiate with people who are already essentially approved for a loan.<!-- Quick Adsense WordPress Plugin: http://techmilieu.com/quick-adsense -->
3. Don’t forget to prepare for the closing costs – There are other things to prepare for other than the down payment. Upfront cost can include title insurance, escrow fees, and more. When applying for a loan, don’t forget to read the GFE (Good Faith Estimate) thoroughly and ask questions if you don’t understand some items in the list. Find out which items are flexible and can still increase and which ones are fixed.
4. Don’t compromise on things that are essential – While there are things in your future house that you can compromise on because you can improve it later on, there are some things that you may not want to compromise on. For example, don’t settle for a two-bedroom home if you obviously need more than that. After buying the house, you’ll find that spending money even for minor renovations.
5. Check the neighborhood thoroughly – Since you’re putting your house in the context of the neighborhood, don’t forget to drive around and observe the neighborhood, talk to the neighbors and visit the nearby schools until you’re content that it’s really a good neighborhood to live in.
Riley Southwick is a writer who writes about real estate properties and a variety of other related topics. Visit our website for more information about Raleigh homes for sale and to look at Raleigh real estate listings.