Learn something new every day
More Info... by email
Buying a new house can be an exciting adventure, whether it is your first home or a new investment property. There are a few considerations to take into account when buying a house which can make the process easier and more enjoyable for you, especially if you are a first time home buyer. Whether you are searching for a home for the rest of your life, or for a quick investment property, there are basic rules of thumb to abide by.
The first thing to think about when buying a new house is whether or not you can afford it. Assess your income honestly and take advantage of online mortgage calculators to figure out how much money you can borrow to purchase a home. Remember that the more you put down, the more favorable the terms of the mortgage will be, and do not be afraid to consult several banks for the best rate. Once you have determined your budget, you can start to look for homes to purchase.
Consider your needs carefully, and start by eliminating houses you know you don't want. Most home buyers select an area to purchase in before buying a new house: decide what neighborhood you want to live in, and think about factors like proximity to work or school, safety, and property values. After you have selected a neighborhood, determine exactly you need from a home: how many bedrooms, storage space, garage, entertaining areas, and so forth. Once you have established your baseline needs, start looking at real estate ads.
Make appointments to see as many homes as possible when buying a house. Many first time buyers make the mistake of purchasing the first house they see, and then being disappointed by it. Be honest with yourself when looking at a house: ask yourself if the storage needs are really sufficient, the bedrooms big enough, the kitchen perfect for your needs. If any part of the house makes you hesitate, consider how much it would cost to remodel or correct a problem, and if the cost would be worth it to you. If you get a good feeling about a house, act upon it, but do not be hasty.
When you are buying a new house, home inspection is a crucial part of the process. You can do a rudimentary inspection when you look at the house by examining a few key weak points. Look at the wiring of the home to determine whether it is frayed or damaged, inspect the floor around plumbing fixtures for signs of leaks, and assess the condition of the roof. If you like a house enough to seriously consider purchasing it, hire a home inspection professional to determine the condition of the house. Some things are easily fixable, while others will require a lot of time and money, and some structural problems may make a bank reluctant to lend money for a mortgage.
Never be afraid to ask for advice or recommendations when buying a new house. Friends and coworkers who have purchased homes are usually happy to offer their experiences to you, and can help guide you through the process. Find a reliable and trustworthy real estate agent to work with when buying a new house so that you can be confident that you are being offered the best homes and the best deals. Many credit unions and community banks also offer counseling sessions to home buyers to assist them in making the right decisions and finding the best loan for their needs, so take advantage of these services.
When considering buying a new house it is a great idea to get a pre-approved mortgage. Nothing is worse than finding the house of your dreams and not being able to afford it.
Sitting down with the financial consultant at your bank, even before you start circling houses in the classifieds, will help you get a realistic outlook for what you can afford.
Another good thing about pre-approved mortgages as that a real estate agent won't up sell you when they know you have a set budget.
Often when new homebuyers are just looking, agents will show you homes out of your price range, hoping you'll reconsider. They do get commission after all.
For those who are considering buying a new house, it is not only important to check out what is inside, but what is in the immediate area.
While we loved one neighborhood for its great parks and schools, but then we discovered it was way too far from grocery stores and other basic services.
While living in a suburban area can be a great place to raise children, check out surrounding areas near your ideal neighborhood and see if there is a spot with more stores. Sometimes just one district over can provide you with more things to do and more convenience.