Tips For Buying A New Home
1. Find out how much you can actually afford!
- Get Pre-Approved
- Rule of Thumb- Aim for a house up to two and a half times your annual salary
- If you cant put down the usual 20%, you may still qualify for a loan
2. Hire a Professional Agent!
- They will save you time, gas, and money
- They have access to listings that are not yet on the market
- They have experience to spot over priced listings and get you the deal you deserve
3. Place a bid!
- Your agent will provide you with a reasonable price range
- Get to know the average sale price of similar homes in the neighborhood over the last three months.
- Generally, make a bid about 8% to 10% lower than the seller’s asking price
4. Hire a home inspector!
- Bank will determine if the price is worth the price you’ve agreed to pay
- Preferably hire an inspector with experience in doing home inspections in the area you are buying. They will point out potential problems that could require costly repairs later on
5. Get a loan!
- You can ask your agent for a referral to a mortgage broker or check with your own bank
- The traditional ratios–the mortgage payment as 32% of your income and the total of your mortgage payment plus your monthly debt payments as 45% of your income–are good basic guidelines.
6. Shop for Home Owners Insurance
- Review your policy with your agent before finalizing anything
- The process of which will put the title to the house in your name, verify homeowners’ insurance on the property, commit in writing to the terms of the mortgage, and usually, put the keys to the house in your hands. In general, you will leave the closing and go to your new home as a homeowner
- The closing will be attended by all of the buyers involved and their Real Estate Agent, as well as the Closing Agent
8. MOVE IN AND ENJOY!!