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Homebuyer Decisions
- Know Your Neighborhood. Think about whether or not this neighborhood will make you as happy as the house does. Do your homework. Drive the neighborhood when school let's out and when the barbecue gets fired up.
- Affordable Homes. You might find that when you compare your affordable home to a higher-price home, you're disappointed. Get pre-qualified for a loan (usually free) and then stick within your budget. Ask your REALTORŪ or loan officer what kind of loan options you have.
- Buy the Right Home. Consider how long you plan on being in the property and plan for any lifestyle changes that could happen. This also can affect the type of loan you should have.
- Knowing Your Next Home. If you see a home that is just what you want and is within your price range, after consultation with your buyer's agent, make an offer immediately! If the property is nice and attractive and fairly priced, others will also know it. Hesitation breeds disapointment.
- Property Resale. Walk yourself through all the positives and negatives to the property. Most home buyers sell within five to seven years. Think long and hard about how you would sell the home prior to buying.
- Down Payment. Consider a 20% down payment if you can afford it. At that point, the mortgage insurance premium of approximately 0.5% of your payment is eliminated. That dollar amount saving allows you to qualify for a higher priced home and some mortgage companies will also allow you to hold your own escrow (don't hold your escrow if you're not disciplined).
- Timing Problems. Make sure your closing/possession dates coincide for your present home and new home. For renters, plan your move to coincide with the end of your lease because of deposits and advance payments. Check with your landlord about an early release clause if you are considering buying a home.
- Choose the Right Mortgage. The thirty-year fixed rate is not the only or necessarily the best answer. Remember, most people change homes every 5-7 years. Have your lender show you on paper how much each program will cost you and how they compare with each other. You could save thousands of dollars.
- Make Your Offer. Make sure you use a Buyer's Agent. They owe a fiduciary responsibility to you. Your agent should prepare a Comparative Market Analysis to help you determine a fair price for the home. Don't lowball; you're starting off on the wrong foot. Have your agent explain the pros and cons from the sellers' standpoint of price, escrow, financing, closing, contingencies, etc. Start out fair and reasonable and it can be a pleasant experience for all concerned.
- Home Inspection. Strongly consider a home inspection. Your agent probably is not qualified as a home inspector and unless you know what to look for and where to look, you may overlook some problems. Be aware that maintenance items are normally not included as repair items. That goes also for building codes that have been changed and are grandfathered.