Buying a home is one of the biggest investments you will ever make. Whether it's your first or fifth home purchase, the current market offers a variety of opportunities that may differ from your previous experiences. To ensure you get a great deal on your new home, follow these proven techniques.
Treat real estate like any other investment: buy low and sell high. This strategy maximizes your return on investment while minimizing your risk. Home ownership is an excellent investment, as it allows you to build equity in a necessary asset - a place to live.
When determining your monthly costs and affordability, don't forget to factor in homeowners association dues and fees. These fees, typically associated with condo units, can also apply to single-family developments. Be sure to inquire about current dues and any upcoming special assessments.
Home buyers with the means to do so should consider making a larger down payment. The more money you put towards the down payment, the less you'll pay in interest charges over the duration of your mortgage.
Before making an offer on a property, carefully consider your buying strategy. If the house is priced competitively, there may be multiple offers. This means you may only have one chance to make an offer that the seller will accept.
Check your credit score and history before applying for a mortgage. If your score is below 620, it may be wise to hold off on buying a home and work on improving your credit to at least 690. A higher credit score can lead to a better interest rate on your mortgage.
Be aware of the difference between being pre-qualified and pre-approved for a loan. Pre-qualification is a preliminary look at your finances and holds little negotiating weight. Pre-approval means your finances, including income, credit, and debts, have been thoroughly checked and you are likely to get the loan needed to complete a purchase.
Attend as many open houses as possible, even for homes you may not initially be interested in. This will provide valuable house hunting knowledge and tips that you may not have learned otherwise. Additionally, online ads can be misleading, and you may find that the house is actually a great fit for you.
When purchasing real estate, it's important to have extra funds set aside for unexpected costs. While buyers usually consider the down payment, taxes, and bank fees, there may be additional expenses at closing, such as property taxes and assessments.
After signing a contract to purchase a home, stay in touch with your realtor and lender. Things may not always go as planned, and staying in communication ensures you will be promptly informed of any issues with your financing or homeowner's insurance.
With the current state of the housing market, there are many great deals available. As with any investment, buy low and sell high. Take advantage of the record low prices and make your dream of owning a home a reality. This article has provided you with the knowledge to use the current economy to your advantage and purchase a home that you will enjoy for years to come.