Planning to Buy a New Home? Advice from the Experts

Tuesday, May 01, 2018

Buying a new home is an exhilarating experience, but also requires a lot of research, determination, and paperwork. 

Many people may not know where to begin when it comes to buying a new home, despite their intense desire for a new house. There are lots of resources to help you when it comes to purchasing a new home; it is all a matter of research and understanding. While the process is very involved, in the end you will walk into your brand-new house feeling satisfied. 

Here are some expert tips to help you get started on your home-buying journey.

1. Pay Off Debts & Repair Credit

If your credit score is under a certain amount (typically around 620), often lenders and owners will not even consider allowing you to purchase a new home. As such, you must take steps to repair or boost your credit score, and one way to do this is to pay off your debts prior to getting a loan or investing in a new home. Consider looking into debt settlement companies, who can help you reduce your debt, as well as reduce your monthly payments in order to get rid of your debt altogether. 

2. Budget & Save Now

Practically any new home will require a down payment. You can, of course, consider applying for a loan to pay your down payment, but then you will still need the money to repay the loan. The best thing you can do before you truly begin searching for a new house is start saving now. Whether it be to pay for the down payment on your own, or to start a savings account for the purpose of paying off a loan, it is always better to be prepared well in advance for the massive costs of buying a new home.

3. Be Realistic

House hunting is exciting, but experts say that many families and home buyers get carried away in the house hunting phase and end up in way over their heads. Set realistic expectations and goals for your new home, and consider details outside of aesthetics. Having a structurally sound home is more important than finding the perfect fixer upper for your DIY inclinations. 

Do not think about waiving home inspections, either. It may sound tempting to save costs, but having an expert inspect your potential new home is incredibly important to knowing the house is safe. Furthermore, remind yourself why you are looking for a new house – do you need a certain number of rooms for a new addition? Do you want a large kitchen, or a backyard for your dog? All of these details should be considered, and do not let yourself be dazzled by a house’s architecture if it does not suit your needs.

4. Consider a Realtor

You may believe that you are ready to negotiate for yourself, but truthfully, the housing business is incredibly competitive and the market fluctuates. Hiring a realtor may be exactly what you need for your whole process, from searching for a home to negotiating to signing. You might think that you are an expert negotiator, but the reality is that you probably do not know enough about the way home-buying works to make a proper argument. 

A realtor will use everything in their arsenal to help you negotiate to a great price within your budget, within reason. They also have the expertise and working knowledge of buying, selling, and viewing homes that will be perfect for your journey into searching for and buying your new house.

5. Get Pre-Approved

Experts say that getting pre-approved for your mortgage is one of the best steps you can take when beginning your home-buying process. By getting pre-approved, you will know exactly what you can afford, and what your mortgage will look like before you even begin house hunting. This will simplify a lot of the process, as you will have your budget and can search only for houses that will work for your available finances. It will also save you a lot of time and pain later if you get pre-approved prior to purchasing, as you will not have to fight with lenders or your bank if you already know what your budget is.

Buying a new home is exciting and daunting, but there are resources and companies out there specifically designed to help. With these expert tips and some research of your own, you are sure to secure the (realistic) house of your dreams in no time at all.

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