Buying a new home can be an exciting, but overwhelming, task to take on. Where do you even start? Do you know what you’re looking for to begin with? What about all that paperwork? Here are four basic tips to get you started.
1) Have visions of what you are looking for financially and physically. See into the future of what you want to be doing in your new home, who you want to visit, where you will commute to from your new home, etc. Also, know what you want the final expenses to look like. What will your expenses look like after buying a home related to mortgage and general upkeep of the home? Will you have enough with your current income? When you know exactly what you want and are looking for in these areas, your realtor and your mortgage broker will be better able to assist you in finding just that.
2) Have someone locally give you the facts on the market. Decrease the amount of stress you are sure to encounter when you spend all your time and money in places you don’t need to by having an expert brief you on the local real estate market. Running around and checking out auctions, properties that aren’t yet for sale, and negotiating deals with ironclad sellers is not worth your time, energy, or money. Ask a lot of questions to your expert to ensure you get the most information out of your time with him or her. Try to create a strategy with them and then be sure to stick to it. Do not get starry eyed from stories you hear about people getting fantastic deals on homes. Usually, this is not reality.
3) It is overwhelming, but read everything. Read the contacts, disclosures, inspection reports, estimates, everything. By doing so, you will be sure to have no surprising down the road. You can also find out what may be missing out of that essential mountain of papers. Is there title insurance? If not, it may be something that you want to purchase to protect your property from other situations where papers are unaccounted for. All these documents can also be confusing so make sure you ask a lot of questions, and keep asking, until you understand exactly what you are getting and exactly what the document is telling you.
4) Do actual math on paper, not just in your head. Doing mental math for money you have left over for repairs, negotiations, closing, etc. can be a make or break kind of mistake. Put everything down on paper so you know exactly what you have, and what you have not. This way, you will have no surprises down the road and have documentation if anything doesn’t match up during the closing process.
Have you recently dealt with the real estate world? What was your experience? Do you have any tips or tricks to share with other readers? Feel free to do so in the comments below!