Image Source: HGTV
These Secrets Could Save You Big on Buying a Home
You’re considering moving to a new home. You’ve done some research but are still confused about how to make the best decision. These secrets from HGTV will help you better understand how to make a smart investment.
1. Date the Neighborhood
Make passes through the area so you can become more familiar with the neighborhood at all times of the day. You might love it around lunch, but it could transform once the sun goes down. How are the schools near your prospective home? You might not have kids, but schools are at the top of many buyers’ lists. Research shows that buying a home in an excellent school district versus a poor one could sell for 20% higher.
2. Secure Your Loan Before You Begin to Look
There’s a difference between being pre-approved and pre-qualified for a loan. A lender can pre-qualify anyone by asking a few questions and estimating your credit score. Pre-approval means that you’ve met with a lender, know how much you can afford and how much the institution is going to lend you. Pre-approval is best for giving you the ability to research and find the best mortgage rates before buying, as well as giving you time to make sure there aren’t any hidden fees and costs.
3. Don’t Try to Guess the Market
As it has become very apparent in recent years, the market goes up and down and back up again. Don’t try and wait until the best time to buy a new home. You might end up missing out on making a move.
4. Biggest Isn’t Always Best
Don’t aim to purchase the biggest home on the block because it can often be the one that sees the least gain in value. Consider buying a smaller home: per square foot, it could sell for more than the bigger house.
5. Know Exactly What Belongs to You
Getting a survey of your potential property makes sense for a couple of different reasons. First, you’ll never have any issues with your neighbors over property lines and second, you can get a better estimate of the property tax on your home.
6. Understand ALL the Costs Involved
Plan to put more money into your home than just your mortgage. There are other expenses involved including property tax, homeowner association dues and repairs.
Increase your budget to include these expenses when buying a new home. It will save you from unexpected future expenses and stress.
7. Have the Home Checked Out From Top to Bottom
You don’t want to invest in any surprises, so hire a home inspector. Two hundred dollars on the front end could save you thousands in the future, and if there are things found to be wrong with the home, you could have bargaining power when placing your offer.
8. Bid Like a Winner
How do you know what to offer? Do you go over or under the selling price? When placing an offer there are two things to consider: First, what you can afford. Second, what you believe the home is worth. Adding up the cost as price per square foot can give you a fair price.
Tip: don’t offer a bid that’s a round number, an oddball figure shows the seller you’re serious and you’ve done your research.
9. Don’t Get Emotional
As the author of the article says, “You’re buying a house, not dating it.” Don’t let your emotions get in the way. Follow your inclination that you are getting what you want, don’t get sad or mad over the backyard or wallpaper in the bathroom. Keep a level head and you’ll make the right decision.
10. Save Your Big Spending for Your New Home
Three to six months beforehand, don’t spend money on any large purchases. When lenders look at you, they don’t want to see new credit card openings or a recent acquisition of large debt.
There are many unknowns when it comes to what, when and how to make a smart home purchase. Get your questions answered in our guide to buying a home in Southside San Antonio.