Buying a home is never a cut-and-dry process; there’s a lot involved you need to know about. The following tips provided by Maisons en Bois France can help prepare you for buying a home.
1. Make sure you’re ready for buying. If you plan on moving within the next five years, buying probably isn’t right for you. Think about your future and where it will take you and then consider continuing to rent if you’ll be changing locations too often.
2. Know how financing works. Make sure your credit history can withstand the scrutiny of the buying process and be prepared to put 20% down on your prospective home. Also, factor a mortgage payment into your budget and see what it leaves you with every month. Remember that to the lender, this is a numbers only game.
3. Know what you can afford. A general rule is to multiply your annual earnings by three and factor in insurance and taxes before deciding if you are financially prepared to own a home. Look at the big picture and consider how future savings will be impacted and if all your money will be going into the house, which may not be a desirable position to be in.
4. Make a list of what you need in a home. Rather than looking at homes exclusively in your price-range, narrow it down to include everything you’re looking for. Anticipate additional family members. If having children is in your future, this is one of the many other elements that combine to form the perfect home for you.
5. Make sure the buying market is right. You may be ready and able to buy; however, market conditions may not be suitable. Be prepared to look into other options, considering all that’s going on with today’s economy.
6. Make sure you want to take on the responsibility. Owning a home demands much more time and work than renting and it’s important that you consider everything that goes into it prior to making the commitment. Many landlords take care of things like lawn maintenance, snow-removal, HVAC and repairs and that will all be up to you now.
7. Look at foreclosure, especially if you’re buying options are limited. Even if the property hasn’t been maintained for a while, the price of a foreclosed home may be worth looking into. The bank may even be willing to negotiate other terms for you as well.
8. Contact an agent in the area. A buyer’s agent is usually paid for by the seller, keeping the cost of the process at a minimum for you. Make sure they are knowledgeable and experiences before putting your trust in them.
9. Never accept the asking price. Most seller listings have negotiations factored into them in anticipation of bargaining. Without low-balling or insulting the owner, make a lower offer and take it from there.
10. Show up qualified. Already knowing you have purchase power can expedite the process as well as get you a lower price. Speak to your lending institution before you start looking for greater leverage and to know exactly what you can afford.
Know these tips and more. Taking on a home is a major task and you want to be in the most advantageous position possible.