Looking to buy a home? Here are five essential tips for making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. If you are paying cash, you should have your funds for the purchase in one account and have a copy available (sans the account #s) for presenting with offers and possibly needed before viewing homes. Some of the more exclusive homes limit showings to buyers with proof of funds cash or otherwise.
If you are getting a long you should obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender that you either have worked with before or know or get some referrals from friends and/or your agent and get written pre-approved. This will put you in a better position to make a serious offer when you do find the right house. Also since Covid, sellers are much more selective on who enters their home and you may need the written pre-approval before even entering the home!
Find a house you can afford.
As with engagement rings, there’s a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc. Your real estate agent and lender can give you cost estimates on the taxes with you estimated loan.
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. Its the little things that they dont tell you or what you dont know that you dont know that can potentially cost you thousands of dollars and possible risk. That’s why you’re better off using a professional agent than going it alone. If possible, recruit an experienced buyer’s agent, who will have your interests at heart and can help you with strategies during the bidding process.
Do your homework.
Before making a bid, have your agent do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that’s competitive, but also realistic. Otherwise, you may end up ticking off your seller.
Think long term.
Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home’s resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.
Southern California Buyer?
Give us a call as we represent buyers all over San Diego county and beyond! We do work for special clients in Orange, Riverside, Los Angeles, and Ventura counties on a case by case basis! Outside of those areas we will find you the best possible agent to represent You!
