Buying a home is one of life’s biggest accomplishments. It’s also probably the most expensive purchase you’ll ever make. The magnitude of a purchase like this can cause a ton of stress – the pressure is on to pick the right house and get the best deal possible. While the process can seem complicated and overwhelming, doing your research and having the right knowledge going in can make everything go much smoother. Here are some of the most important things to know before buying a house in order to minimize stress and get the best deal possible.
#1: Set a Budget
I believe that this is easily the most important thing that you need to do before you even think about looking at properties. First on the list: mortgage pre-approval. This will give you an idea of what the maximum amount is that a lender will provide you for a mortgage. It takes into consideration many things including your income, down payment, credit, and more. You can find more info on mortages here. This is the starting point for determining what price range you should be looking at, and I like to tell clients that this should be viewed as the absolute highest price that you could afford to pay for a home if there were no other costs that you had to consider. But something that most people don’t realize is that there are many other costs that you are going to incur during the purchase of a home, and these bring the price range that you should be looking at even lower.
The list of costs associated with buying a home are longer than you might think. lawyer fees & disbursements, adjustments on closing, title insurance, moving costs, and land transfer tax are just a few. If you want more information on these costs along with the others that you are sure to face during your purchase, check out my free Buyer’s Guide for all of this and more. With all of these added costs, you need to evaluate what you can afford in terms of a mortgage and then adjust to factor in everything else. This ensures that you don’t spend more than you should and then face problems with being able to afford everything down the road.
#2: Pick the Right Team
You have to remember that no matter how complicated something seems, there are always experts who can help. A key component of a smooth buying process is working with the right people to help you with the things that are required. A good mortgage broker will advise you on the finances of a home purchase, a good lawyer will make sure that all of the documentation and legal requirements are followed properly, and a good realtor will take the lead and make sure that everything is put in place to help you succeed.
I believe that if you pick the right real estate agent who is an expert of the market and genuinely cares about you above all else, you are destined for a successful deal. They will put all of the pieces in place so that every base is covered and the chances of failure are minimized. They will have resources for the best lawyers, property inspectors, and other key players to the deal. Not to mention their knowledge of the market to help you make the best offer that will save you money and actually get a deal done. You should be able to sit back and feel comfortable that your realtor has everything covered.
#3: Be Specific With Your Needs
Make sure you are having regular discussions with your realtor regarding what you are looking for in a home. The more specific the better. Having a clear vision that both parties share will ensure that you are only being shown the best properties that fit all of your needs. This will eliminate wasted time and effort looking at houses that you don’t like, which will help you find your dream home faster. It is important to also remember that needs change. Things could happen in your life during the buying process that make you require something in a home that you didn’t originally, or you could change your opinion on something that you thought you wanted after seeing it in the homes that you look at. Having regular conversations to re-evaluate your needs will make sure that you and your realtor stay on the same page and adjust your strategy with these changes. Communication is everything in this relationship.
#4: Educate Yourself
Having a basic understanding of the buying process is never a bad thing. Yes, you will have the help of an amazing real estate agent (hopefully) who will provide their expertise and bring in other experts to help as well, but having your own knowledge will help you identify things that may not be done right and allow you to be aware of what to expect. I believe that learning the steps of the buying process and what you will face going forward is a huge help in reducing a buyer’s stress and uncertainty. You can find useful information very easily (like on my website or social media pages), and most of it is easy enough to understand so that you can at least have an idea of how things should go and what the process looks like. I make sure that all of the information I provide is explained in a way that anyone can understand, regardless of your level of experience with real estate.
Want To Learn More About Buying A House?
If you want to learn even more about the buying process, get my free Buyer’s Guide. If you have any questions or are interested in buying or selling a home, please do not hesitate to contact me at any time.
My personal cell: 289-675-4882
Email: brad@braddornellas.com