Thinking of Buying a Home? Congratulations - the dream of home ownership is an exciting adventure, if you are well prepared for the process and ongoing years to come of owning a true asset.
The past couple years have been a royal roller coaster, with many buyers questioning - should I really consider buying a home? Despite economic struggles, owning a home of your very own has so many rewards vs renting. Home Owners love the fact that they can paint any wall, decorating any way they wish - without having to answer to a landlord, asking permission. Homes are normally much larger in size than apartments, normally with a yard to enjoy as well and so much more.
Purchasing a home is serious business - probably the largest, most expensive asset you will ever purchase, so please avoid these mistakes:
* Failure to Get Qualified by a Mortgage/Loan Officer "BEFORE" beginning your home search. Why? It will be a big waste of time to look at homes if the bank is not willing to loan you the money. Buyers need to know right away what they can truly afford, plus make sure they fall into the guidelines of credit and ratio's the banks require.
* Don't make any purchases that will put your pre-approval in jeapordy. What does that mean? Example: The Pre-Approval is based on your current debts and income and does NOT take into effect any NEW debt. Should you decide to buy a new car during this process, your home loan could be denied due to a change in your debt ratios. Before making ANY purchases, such as furniture, appliances, cars, riding lawn mowers - consult with the lender you are woking with FIRST, to see if will put your pre-approval in jeapordy.
* Don't skip out on having a home inspection, even if the home looks to be in terrific shape. Why? A home inspector is your last chance to investigate whether this home is "really" as sound as it looks. No home is perfect, but a home inspector can point out potential problems plus point out features you didn't know the home even had. Most home inspectors will take their time with you, offering home maintenance tips. You don't want to move in and be blindsighted with unforeseen costs.
* Work with a licensed real estate agent that knows the area well. An agent that will listen in detail, for what you truly expect and want in a home. Don't compromise on the things that are most important to have in a home or once you move in, buyer regret may set in, making you miserable.
* Once you locate a home, call for Home Owner Insurance Quotes. Many first time buyers go into shock when they hear the cost of home owner insurance. Most times, the buyer must pay for the 1st year's home insurance policy up front by closing. The loan officer should explain more about this and how an escrow account will be set up to cover future home owner insurance premiums and taxes on the real estate property.
I am sure there are other points that I failed to make here - and I would love for my activerain family to add thoughts or other words of wisdom for buyers.
Thank you ....