Important for Home Buyers!!
Get Pre-Approved for Your Home Loan -
Thereís a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and theyíve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can`t afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there arenít any hidden costs in the loan.
Visit the Neighborhood- Talk to Neighbors
Before you buy, get the lay of the land Ė drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasnít for them. Drive by the house at all hours of the day to see whatís happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services. Even if you donít have kids, research the schools because it affects the value of your home in a very big way. If you buy a house in a good school district versus bad school district even in the same town, the value can be affected as much as 20 percent.
Be Prepared for Sleeper Costs-
The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance and potential property-tax increases. Make sure you budget for sleeper costs so youíll be covered and wonít risk losing your house.
Bigger Isnít Always Better -
Everyoneís drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. Thereís an old adage in real estate that says donít buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited.
Donít Try to Time the Market
Donít obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, youíre probably going to miss out.
Keep Your Money Where It Is
Itís not wise to make any huge purchases or move your money around three to six months before buying a new home. You donít want to take any big chances with your credit profile. Lenders need to see that youíre reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, youíre going to have a hard time getting a loan.
The Secret Science of Bidding
Your opening bid should be based on two things: what you can afford (because you donít want to outbid yourself), and what you really believe the property is worth. Make your opening bid something thatís fair and reasonable and isnít going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood that are similar in size and age.
A Realtor will look at comparable homes and the current market to advise on reasonable offers.
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2395 Kildaire Farm Rd
Cary, NC 27518-6689