The home buying process is a tricky one. If you are either a first time home buyer just getting into the market, looking for a move-up home, or even down-sizing to a smaller home, there are many things you can do to take the trauma out of the transaction. Home buying is not only a big financial commitment, but an emotional one as well.
First, find a Realtor that you trust and feel comfortable with. The home buying process is a complicated maze of contracts, disclosures and loopholes that require legal knowledge, diligent timing and experience. Make sure your Realtor of choice is not only competent, experienced and knowledgeable, but is a good fit with your personality.
There is no “right” time to buy, anymore than there is a right time to sell, especially if you are both buying and selling. In an upward market, you are selling high, but your purchase will be high, too. In a downward market, you are selling low, but you will save money on your purchase, too. If you find the perfect home now, don’t try to second guess the interest rates or the housing market by waiting. A good home won’t stay on the market for long. If you miss out on your perfect home, it is hard to forget it.
Get your finances in order. Review your credit report and make sure you have enough money to cover the down payment and the closing costs. Don’t wait to get a loan. Talk to a lender and get pre-qualified for a mortgage before you start looking for a home.
Calculate the total cost of homeownership, including property taxes, insurance, maintenance, and association fees. Don’t let yourself be house poor. If you max yourself out to buy the biggest house you can afford, you’ll have no money left for maintenance, furniture, landscaping, décor and all of life’s other little surprises.
Accept that no house is going to be perfect. Focus on the things that are most important to you and let the minor ones go. Don’t get caught up in the physical aspects of the house itself - room size, kitchen, formal dining - that you forget about the basics - location, noise levels, amenities - that have the biggest impact on what it’s like to live in your new home.
Finally, don’t ask too many people for opinions. It will drive you crazy. It is natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
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