Armed with your down payment and your pre-approval
letter for a mortgage loan, the next step is finding the house that will
best meet your family's needs. With realistic expectations, patience and plenty
of research, you'll be well on your way.
Once you narrow the search to neighborhoods
you like, you'll want to determine the maximum house price you can afford. Even
though you're pre-approved for a set loan amount, it doesn't mean you can
afford it. You'll want to factor in other expenses, including retirement and
college savings, vacations, and home maintenance and repairs, when you
calculate how much you can afford for a monthly payment. And don't forget to
budget for homeowners insurance and property taxes. There's also homeowner's
assocation fees, especially in newer developments.
Next, differentiate your needs versus your wants. You
need three bedrooms, but a fourth room would be nice for a play room or guest
room. You need a two-car garage, but a larger one would be nice for storage.
You need a functional kitchen but want hardwood floors. You need two bathrooms
but want a luxurious master suite. You get the picture.
As you begin your house-hunting venture, prepare a
checklist. Break it down between exterior and interior characteristics. Make
notes on each feature and make notes. Some people give each a 1 to 10
score, which is fine, but the first few houses you see will score differently
than the last few because you have many more to compare against. Also, after
viewing many homes, the numbers begin to lose meaning.
Some of the exterior features to rate might include size
of yard, quality of fence, paint condition, roof condition, window conditions,
garage, back yard. When it comes to interior, think about square footage; the
floor plan; condition of walls; the size, quality, and functionality of the
various rooms and closet and storage space.
Your checklist should also include any other factors you
deem important—the amount of traffic, the appearance of the neighborhood,
safety in the area, the reputation of local schools, etc.
Here are some other suggestions from industry experts:
•
Take a camera with you to capture an image of each house
you look a that makes it to the "maybe" list.
•
Don't make a hasty decision, especially if you feel
yourself becoming guided by emotion. Selecting a home takes time, thought and
analysis. You should carefully weigh the pros and cons of each house you like.
•
Review your checklist and notes and compare it against
your needs, wants and budget.
•
Bring your spouse, friend or family member with you to
get a second opinion. They may notice a shortcoming that you've overlooked.
•
Find out how much utilities and maintenance cost.
•
Stay on top of newly listed houses via a Multiple
Listing Service on the Internet.
•
Remain in close contact with your agent. This is
extremely important if you're in a strong seller's market and/or in which homes
that are priced right go fast. You want a good agent who will alert you of new
listings and who will show you the houses as soon as they're listed.
•
Be prepared to look at the potential of a house rather
than what you see in front of you. Set your priorities and decide what can be
sacrificed. It's more important that the layout of the house and the number of
bedrooms you need fit your needs and that all major systems are functional
versus your dislike for the avocado green carpet or the lack of landscaping.
Those types of cosmetic shortcomings can be easily remedied once you buy the
house.
If you find a house you like, offer a competitive bid.
Keep in mind you'll likely be competing against other offers—especially if
interest rates are low and the spring buying season is in full bloom.
And don't forget—once you make an offer, make it
contingent upon the findings of a professional home inspection. If any major
defects surface, you'll want to have the leverage to renegotiate or back out of
the deal completely.
And, of course, give us a call! We’d love to help you
with your house hunting.
No comments:
Post a Comment