With all the recent mortgage changes, and the knowledge that rates will eventually go up again, make a lot of people feel like it’s time to buy a house right now. And maybe it is, if you do it right. Read these tips to ensure you don’t make uninformed decisions.
Not considering mortgage pre-approval
Making an offer to purchase as soon as you find the right home becomes a smoother process when you know the amount you will be approved for. Talk to a mortgage professional to find out how much financing you qualify for, and gain the confidence to begin looking at homes within your price range. And, you’ll present yourself as a serious buyer to real estate agents, encouraging them to want to serve you better.
Forgetting about the closing costs
Be certain you don’t underestimate all the costs involved. Remember that in addition to your mortgage, you’ll pay costs necessary to seal the deal including lawyer fees, home inspection, deposits, land-transfer tax, moving expenses, property tax and home insurance. If you’re buying a condo, factor in the maintenance fees and taxes as well.
Skipping the home inspection
The expression “don’t judge a book by its cover” applies clearly here. Typically, home inspections will cover the condition of the home's heating and air conditioning system, plumbing and electrical systems; the roof, attic and visible insulation, windows and doors, the basement, and structural components of the home. Save yourself the expense to fix things you never knew were broken.
Letting your emotions lead
Impulsively buying a home can be an expensive mistake. Make sure you do your research first, and think critically. Don’t let the heart overrule the head. Letting your emotions lead cloud your judgment and end up costing you dearly.
Take advantage of today’s market, just do your homework first.