Are you ready to move? Housing is the number one expense Americans spend their money on—right up there with transportation and food. Whether you’re a first-time home buyer or an experienced home owner, knowing the tips for buying a home successfully will relieve stresses and help maintain financial flexibility.
- Plan to buy the home you want to live in a decade from now. This includes buying a home that not only meets your needs now, but also your anticipated future needs. Don’t worry about the short-term net gains; while these are important to consider, you’ll get more out of the house if you plan for the far future.
- Understand the difference between your wants and needs before buying a home. Consider what you need and what you want out of a house. Find a home that includes your wants, but make sure the house first covers all your needs.
- Create, stick with, and never spend over your budget. Making a budget will help you decide what you can and cannot afford. If it’s over your budget, keep shopping, even if you think a house is your dream home; you’re likely to find something just as dreamy and more affordable.
- Avoid taking risky financial moves that might mess with your credit in the months leading up to home buying. Remember that investing in a home is already a huge financial move you’re your credit will take into account. One way to get a good deal on mortgage is showing that you have a stable credit history; it looks good to lenders and shows you’re wise with your money.
- Pay at least a 20 percent down payment; otherwise, try adjusting your budget. Buying a home successfully includes paying a sizable down payment if you can afford it. Twenty-percent is the recommended range since you might otherwise need to pay a private mortgage insurance. A good down payment also helps prevent going upside down on your loan—that is, owing more on your home than it’s worth.
- Get a home inspection before buying. The seller may have hired a home inspector already, but it’s worth paying extra to hire your own. A second set of experienced eyes might catch a problem that was missed, and even if there’s nothing wrong, you’ll have the extra peace of mind.
- Collect an emergency fund after buying a house to account for unexpected events. An emergency fund is one of those things you’ll be thanking yourself for later. After making your monthly mortgage payment, set aside some money in this fund so that you have money for utilities and living expenses in the event of unfortunate events.
- Gain pre-approval to avoid future hassles. A great strategy for buying a home successfully is getting pre-approved. This step involves extra paperwork and time, but you’ll better understand your mortgage options and have a loan plan worked out. Not only is it one more thing you won’t need to worry about when you’re buying a home, but it also shows the seller you have strong financial skills. You’ll also know in advance what homes you cannot afford.
- Shop around for mortgages to get the best deals. The first mortgage you’re offered shouldn’t be the immediate loan you settle on. Even if it’s a great deal, shop around from other lenders in case you find a deal that better fits your needs.
- Don’t get attached to a home before you buy in case you need to walk away. Perhaps the best tip for buying a home successfully is avoiding emotional attachments. Sure, the home is gorgeous, but does it fit your needs? Are you ignoring vital, costly issues because you’re in love with all the shiny frills the home offers? Keep a clear head and be ready to say “no” to a house as you’re shopping.
Buying a home successfully doesn’t need to involve unnecessary stress. Follow these suggestions and you’ll be on your way toward owning a home you love and fits your personal and financial needs.
For more homeowner tips, follow the Ryan Roberts Realtor Blog! In the market for a new home? Contact Ryan Roberts at 334-750-9872 or email him at [email protected]!
