So you're all set to finally making the big step of buying a home for the first time. But don't get too excited nor too overwhelmed about the idea as there are still a couple of things you need to take into consideration such as:
Get approved first
Know how much you can spend by getting pre-approved with your mortgage first. By knowing the amount, you can feel comfortable while getting competitive during the bidding process.
List of the things you DON'T need
Create a list of what you don't need such as you are okay living without a pool or without a third floor on the house. Share this to your realtor. This will aid in avoiding a bidding battle.
Right Budget
Remember that even though you're approved for a certain amount that doesn't automatically mean that it will fit your budget. Go through your monthly financials and see how much you can really take on.
Be prepared for post-purchase cash
Though you may have set your eyes on a house that is move-in ready, there will still be instances that you may want to add or change in the house for you to be able to really call it "your own" - e. g furniture, appliances, decors, etc. So set aside a budget for that.
Always check the location
As blogged by PopSugar: "Buy for the neighborhood, and then the house - where you live is key. It's better to have the worst house on a great block than the best house on a bad block."
Check the miles
Do a mock commute. Yes, the commute time from your office, your kids' school, the groceries, from your home actually matters!
Have a Personal Tour
Try to ask the seller if they can give you a personal tour around the house so you can ask them detailed questions about everything such as the best spot to get sunlight, etc.
Be organized
Make sure that all your paperwork come in handy because you'll definitely need them again.
Keep looking!
Still continue to look on MLS, Zillow, or even your Sunday paper as you might still be able to find a good house that your realtor might have missed.
Write the owner a letter with your offer
Include the factors why you love their home and put in details about yourself as well. Don't be scared if you get personal, the seller might actually budge their price for you!
Consider a down payment
As advised by Forbes: Andrew Firoved, chief executive and founder of CounselorDirect.com urges real estate newcomers to cough up 20%, which will add equity to your house and will lower monthly payments.
"You know you can afford to buy a home when you have saved enough money to put a down payment," he says. That down payment also means that you can qualify for a loan modification in case you need it.
Close right
Ask about closing costs upfront so you will know how to budget when you make an offer.
Don't get attached
Don't get too connected to a certain home such as the wall color or the furniture. Think about how the home will appreciate in time.
