It's 2012...a new year with new opportunities for us all. If you're on the market to buy a home, make your New Year's Resolution to be prepared for the process of buying a home.
Here is a checklist to help you along and eliminate some of the potential headaches along the way:
Get Pre Approved For Your Mortgage - This really goes without saying, but there are still many people who don't do this beforehand and it just adds time to an already lengthy process.
Work With A Realtor - Hey, what would you expect me to say? Seriously, though, the real estate process is more complicated in this economy than ever before. Find a real estate professional you trust and let them guide you through the process.
Research - There is a lot of information online...some good, some bad. Do your research and consult with a Realtor you trust to discuss what you find. Remember...don't research houses, research locations. It's important to learn about neighborhoods, school districts, etc. And don't forget to look at how much of the neighborhood is bank owned.
Get A Mortgage Within Your Means - Be realistic with your finances and your expectations. Many people who were ruined financially when the housing bubble burst were buying homes with a mortgage beyond their long-term means with the idea that they could turn around and sell it for a profit. Then that didn't happen, and the rest is history. There is still a tendency among home buyers to get "more home for the money," which is good. Everyone wants a good deal. Just make sure you're looking beyond the next year or two and are realistic with your ability to pay.
Home Inspection - This also almost goes without saying, but don't go cheap on inspections. An inspector who is licensed (an engineering degree doesn't hurt, either) may cost more, but it will save you headaches in the process.
Know What You're Getting Into - This should fall under "Research" above, but I think it deserves its own space. Short sales and foreclosures can have very attractive prices, but it's important to know just what you're buying. Some of these properties have been sitting for a while with no upkeep, which means that while you may be getting a great price up front you may have to invest more money to get the property in acceptable condition. These properties are usually sold "as is," so be prepared.
Figure In Additional Expenses - Especially with fixer-uppers, keep in mind the additional expenses involved with fixing when you're determining what mortgage you can afford.
Can You Resell? - This again goes back to finding a real estate professional you can trust. Look beyond the next couple of years...if you decide to relocate for any reason, will you really be able to sell your home? Don't take this lightly...the short sales and foreclosures you see are from people who couldn't. This again goes back to "Research."
Above all, enjoy the real estate process. If you follow these tips, that will be easy to do...as you will eliminate many potential obstacles by being prepared. When you're prepared, it's easier to enjoy the process:)
Click here for a printable home buyer's checklist from hud.gov.
And as always, for more help and hints, just call me...your Beach Areas Specialist at 562-244-8021, visit my webpage www.annopoly.com or visit me on Facebook.
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