There have been few times in history if ever that it has been so attractive for buying a home. However, the recent roller coaster rise the mortgage and housing market has been through certainly presents some challenges for buyers, so check out the following 5 tips for ensuring a successful home buying experience…
1. Getting Pre-Qualified
It is important to realize that there is a big difference between receiving a mortgage pre-approval letter and an actual loan commitment. Avoid frustration and disappointment later by providing as much information and documentation to your lender up front so that your pre-qualification is accurate and will hold up.
2. Deciphering Home Values
One of the most difficult parts of buying a home today is figuring out home much they are really worth. Even every foreclosure property isn’t a steal and you don’t want to risk your deposit money or months of your time on a home that won’t pass an appraisal. Get a good feel for local home values yourself and talk to an appraiser as early as possible to confirm your assumptions about the value of a home.
3. Home Inspections
As the market heats up some sellers are trying to force those interested in buying a home to waive their right to inspections. Never, ever buy a home without doing a home inspection. Between mold, Chinese drywall, insects and potential foundation issues a home inspection can really protect you against getting in way over your head.
4. Handyman Special vs Ravishing Rehab
Take the time to decide early whether it is better for you to finance a better looking home or try to save a few dollars and fix it yourself. If you have plenty of cash laying around and some handyman skills then a fixer upper may be for you. If not buying a home which already looks great maybe the smarter move.
5. Tracking the Closing Process
New home buyers often think that once they sign a contract they are virtually home already. With tough appraisal reviews and mortgage underwriting and many people involved in every transaction buyers must actively stay on top of the process and ensure no delays arise. Whatever you do, don’t quit your job or apply for credit at every furniture store in town until after you close or face killing your deal.