If you are considering the purchase of a new home, there are some do's and don'ts that you should observe throughout the process. Here are a few of them:
Don't look for a home until you have been pre-approved for a loan.
Sometimes, potential homebuyers receive a pre-qualification notice and assume that they are qualified for that amount. However, pre-qualification does not require the review of all of a person's financial data. As a result, the amount for which a person will be actually approved may be much different than the pre-qualification amount. On the other hand, a pre-approved status means that the lending institution has reviewed the financial data of the home buyer and has approved him or her for a specified amount of money.
Knowing the pre-approved amount can help a buyer avoid spending hours searching for homes that are outside of his or her budget or price range.
Don't forget about fees.
During the home selection process, the buyer should realize that the cost of purchasing the home will include more than the house's sticker price. Points, fees associated with loan processing and real estate agent costs should also be considered.
If a buyer has saved a substantial amount of money, in addition to securing a pre-approved loan, the fees may not seem so daunting. However, if a buyer is counting every dollar, it will be important to fully assess every fee associated with a home purchase.
Look for a home that meets most of the items on your must-have list.
Most homeowners have a list of items that are important to them. This could include an open concept floor plan, a kitchen with a large island or a finished basement. Regardless of the desired amenities, when looking for a house, be sure to separate the must-haves from your wish list. No house has everything that a homebuyer wants, especially if the buyer is operating on a budget.
Do make an offer on a home once you find the right place.
If you find an almost-perfect house within your budget, it is best not to delay making an offer. A delay could allow another home buyer present an offer, and multiple offers could drive up the cost of the home.
Some homebuyers try to delay making an offer until they feel that the real estate market will give them the best price for their money. However, it can be difficult to predict changes in the real estate market and you can end up losing the house of your dreams.
If you are in the market for a new home, schedule a consultation with a real estate agent (such as one from RE/MAX INTEGRITY) in your area.