Home Buying – How to avoid paying too much
Whether you’re a first time buyer or a veteran of the real estate game,Home Buying – How to avoid paying too much Articles buyinga home can be a mammoth process. It’s an emotional time often accompanied withdifficult choices. Those same difficult choices are tied directly to costs and your ultimate return and happiness.
Finding the right home for your family’s needs is hard, but managing to avoid paying too much is a another mastery of skills entirely. The following will show you not only how to make sure you’ve found the right house, but also how to negotiate the right price.
Know what you’re shopping for before you start
This first step is understanding what you are seeking. Your family has certain needs which must be fulfilled. Also there are many desires which may or may not ultimately be fulfilled. Take an unemotional look into those needs and desires.
Do you choose a three-bedroom home with room for your family to grow or the one with a large back yard, perfect for entertaining? Is having a large kitchen more important than having an extra room?
Two lists should be created – a wish list (your desires) and a reality list (your needs). The reality list consists of those items which your family really needs. They are “non-negotiables”. On the other hand, the wish list contains those items which would be nice to have. Prioritize the lists and the goal is clear – your next home needs to have most, if not all, of your reality list items and hopefully a few of the top wish list items. These lists will keep your efforts channeling in the proper direction.
Shop for a mortgage before you shop for a home
Getting a loan pre-approval is the smart way to shop for a home. It tells the sellers that you’re a serious prospect and you’ll know in advance the maximum mortgage you can afford. Make sure you get a commitment in writing.
It’s easier than ever to qualify for a home loan. Lenders have modified qualification rules and created programs designed to help people even if they have problems in their credit and employment histories. Many programs dramatically reduce down payments, so if money’s tight now you can still make that purchase.
First-time home buyers can benefit from the many lender programs that now exist. Reduced down payment is an example of such programs.
Pick the right real estate professional
From finding the right home to selecting a lender to meet your financial needs to getting proper property inspections to negotiating the best deal, it can be taxing for even the hardiest of souls. You need the right Realtor on your side.
The right real estate professional must have the high level of