A well-thought-out strategy will help you focus your new home quest and find the right home for you.
House hunting is similar to every other shopping trip. You will zoom in on the new home you want at the right price if you know just what you want and do some testing. These eight-pointers will assist you in making an informed home purchase.
1. Outline what you want from your new home.
Recognize the style of your new home that would best suit your personality.
If you want to buy a new house or renovate an old one?
Is it better to build a ranch or a multistory home?
Are you truly handy, or would you need to pay for builders if you're considering a fixer-upper?
Having a brief outline about what it is
that you want can help you narrow down your search and home hunting.
2. Research.
Make a list of the amenities you like in
your new home and determine which are essential and which are optional. Based
on travel time, schools, entertainment, safety, and price, choose three or four
areas where you'd like to live.
3. Plan the budgets.
Lenders generally recommend that you buy a
home that costs two or three times your gross income. Make a budget so you know
how much you can afford to spend on housing per month. Don't put off looking at
borrowing until after you've found a house and made a bid.
Gather the financial documents and consult
with a lender and get a prequalification letter that specifies how much you can
borrow. The lender may or may not take into account the additional costs you'll
incur at closing, as well as the intentions to start a family or buy a new car,
so shop in a price range you're happy with. Furthermore, making a conditional
offer will make the bid less appealing.
4. Set a moving timeline.
If you have account blemishes that will take some time to cover up?
Have you sold your old home or place of residence if you still own it?
If not, you'll have to account for the time it takes to sell. When does your loan expire if you rent? If you think interest rates will rise soon? All of these considerations would have an effect on the timing of your purchase, closure, and relocation.
5. Think long-term.
Your future plans will influence your home purchase. Are you looking for a starter home with the intention of moving up in a few years or a home that you want to settle in for five to ten years?
You will need to change your goals when working
with a starter. When you want to start a family, make sure your priority list
helps you find a house you'll enjoy for years to come.
6. Be realistic
It's fine to be picky about the house and neighborhood you choose to live in, but don't be narrow-minded, unrealistic, or blinded by slight flaws. You can lose out on wonderful homes on streets that are just as safe and secluded if you plan on staying in a cul-de-sac.
On the other hand, don't be so taken in by a "wow" feature that you overlook other factors, such as noise levels, that can have a significant effect on your quality of life. Use the priority list to assess each house, keeping in mind that no home is flawless.