Buying Secret tip #5: Save and Keep!
If you are in the market to buy a home, it is smart to not spend any of your money on big purchases 2-4 months before actually purchasing your home. This can effect your credit and effect the loan you receive. If you open up a credit card, purchase a new car, or anything that is considered a big purchase it will increase your debt and making it harder for you to qualify for a loan.
Buying Secret tip #4: Get Pre-Approved!
Getting pre-approved is essential in the home buying process. Getting pre-approved means your lender has looked at all of your documents and financial information and they’ve let you know how much you can afford when purchasing a home. Do NOT go home shopping without being pre-approved. If you are not pre-approved you can fall in love with a home and by the time you get pre-approved the home will be more than likely under contract.
Buying Secret tip #3: Do a check up on your home
When car shopping you always check to make sure the car is running and in good shape. When purchasing a home, it is important to hire a home inspector. The home inspector will spend 3-4 hours and inspect every angle of the home. The best part is If the home inspector does find any issues with the home you go back to the negotiating table and renegotiate the price of the home. Depending on the size of the home, inspections cost anywhere from $250-$500 but it could end up saving you thousands of dollars.
Buying Secret tip #2: Be a Bid Bull
Your initial offer on a home should be based on two things: What you can comfortably afford and what you really believe the value of the home is.
Always look at the comps in the area and see what the average price per square foot is going for. Another valuable tip is to look and see if sellers are behind on their property taxes, this will help you identify if the sellers could be motivated. To find out this information, go to your local county clerk’s office.
Also, another great tip is make an oddball offer. For example: $250,551 compared to 251,000. A nice round number looks like every other offer. When you become creative it seems like you put some thought in your offer.
Buying Secret Tip #1: Feel out the Neighborhood
Before you buy in a certain area, drive around in the morning, afternoon, and night time. This will give you an idea what the neighborhood is like during different hours of the day. Find out how far it is to your local malls or grocery stores. Research schools in the neighborhood, the schools with a higher rating usually give a home a better value.