by Cody Connolly
on Wednesday, February 6th, 2019 at 3:31pm.
Buying a home is both exciting and intimating.With many different things to consider when you decide to buy, it is important to educate yourself on the important implications homeownership creates.Do you know if you’re prepared both financially and emotionally to own a home?Here are 5 important questions you should ask yourself before going house hunting.
Whats My Total Budget?
First things first, you need to establish your budget.What can you afford?Do you feel safe enough to commit to a 30-year mortgage?Typically, you’re taking out a loan, often times for hundreds of thousands of dollars, and promising to pay it back over the next 30 years.Do you have enough money in your savings to cover your mortgage for a couple of months if unemployed?The rule of thumb is your mortgage payment should be less than 30% of your monthly income.
It is important to get pre-approved for a mortgage before making an offer.This not only tells you how much home you can afford but puts you in a better position to make an offer once you find the right property.A pre-approval is based on your credit history, debt, and income.
You need to consider the other payments that may come up beyond just the price of the home.There are other payments such as repairs, renovations, closing costs, and commissions you need to factor into your budget.For a tailored look into your total budget, use a mortgage calculator to see what your monthly mortgage payments would be if you bought a home today.
What Do I Want?
Once you know your budget, take the time to figure out what type of property you want.It is important to establish and list out your needs (good schools, large backyard, pool etc.).Figuring out the town or neighborhood you would like to move to is vitally important, as factors such as crime rate, schools, environmental issues, proximity to the freeway are just some of the impacts that can dramatically impact a home.Finding an agent who understands your wants and is knowledgeable of the area you are looking to move to will help guide your search.
Who is My Team?
The home buying process usually requires a multitude of professionals working for you.You need the right mortgage broker to help select the right loan for your situation and a knowledgable realtor who is familiar with the area you wish to move to.A good home inspector is vital in determining the current state of the home.Typically, a knowledgable realtor will help recommend and connect you with elite professionals to make up the best team possible.
How Can I Make the Best Bid Possible?
Making an offer on a house is obviously one of the most important factors when buying a home.Offer too little and you risk losing out on the home to someone else, but offer too much and risk overpaying.Do your research!The opening bid should be based on the sales trends of similar homes in the area.If the comparable properties were recently sold for less than the current asking price of the home you are looking at, you should feel comfortable making a bid slightly above the asking price.Conversely, if the market seems to be slowing down and comparable properties were sold at the price the home is listed at, it could be wise to offer below the asking price.
It is important to ask the sellers' agent questions in order to distinguish the right bidding price.Ask questions like is the seller in a rush to sell?How long has the property been on the market for?Why is the seller moving?They’ll never tell you how low the seller is willing to go but you might get interesting tidbits of information that will shape your bidding price.
A personal cover letter makes it far more likely that the sellers will accept your offer.Connect with the listing agent to explain who you are and why you are a great buyer for their property.
Will I Be Prepared for Closing?
Closing costs catch many buyers off guard. You need more than just the down payment as there are other bills typically due at the time of the signing.Home inspection bills, title insurance, attorney fees, real estate commissions are some of the costs that are due at closing. Closing costs can really add up. But if it’s a buyer’s market, you may be successful in including this as a negotiating point on a purchase offer.
Connolly Real Estate Team provides the most convenient buying process ever created! From the way you shop and view properties, to the way you finance, past the moment you move in. Our company has partnered with different companies from a mortgage company, a professional moving service, furniture store, and interior designers which allow us to work hand in hand to deliver a streamlined, convenient process for those looking to buy a home. We have eliminated the traditional homebuyers obligation of going back and forth with multiple parties as the way to buy real estate. We guide our clients step-by-step through the most convenient buying process ever created!