House Shopping Guide: Tips And Tricks For House Hunters Making the decision to buy a house can be one of the most exciting times of your life. Before you dive in, it's important to ask yourself a few questions and explore how to balance your wants and needs with your budget. We've put together a complete house hunting guide to help you find the home that's right for you at a price you can afford. Verify your mortgage eligibility (Dec 5th, 2023) How To Start House Hunting: Step By Step Step 1: Determine Your Budget And Start The Approval Process Before you begin looking at houses, determine how much home you can afford. Use an online budget calculator to determine the mortgage payment you can afford each month. Keep in mind that your mortgage payment isn't the only cost you'll incur each month as a homeowner. Be sure to factor the following into your budget, too: Property taxes Homeowners insurance Home maintenance and upkeep Homeowners association (HOA) fees Utilities (gas, electric, water) Unexpected expenses (medical emergencies and unexpected home repairs) Use a mortgage calculator to estimate your monthly payments based on factors like the home price, down payment, loan term and mortgage interest rate. Be sure to get initial mortgage approval with a preapproval letter, which is different from a prequalification letter. Let's take a look at why. Prequalification letter: When a lender says you're prequalified for a certain amount, they're giving you a rough estimate of what you can afford based on a verbal confirmation of your income and credit score. Preapproval letter: A preapproval letter from a mortgage lender states the mortgage loan amount that you qualify for. It holds more weight than a prequalification letter because lenders calculate it based on official documents, including your bank statements, W-2s and credit report. Even with a prequalification letter, many real estate agents won't work with you until you get initial mortgage approval. Verify your mortgage eligibility (Dec 5th, 2023) Step 2: Create A House Shopping List Of Must-Haves And Nice-To-Haves To ensure you start on the right foot, shopping for a home might involve some prioritizing. We suggest starting by listing each room you would like your house to have. Then, go room by room and write out the features you want each one to have. You might consider organizing these features into three categories: must-haves, nice-to-haves and deal-breakers. When you're done going room by room, consider must-haves and nice-to-haves for the home as a whole. Must-Haves Verify your mortgage eligibility (Dec 5th, 2023) When something is a must-have, you simply can't live without it in your home and it's among the things you'll use to weed out homes that just won't work. For example, you might absolutely need three bedrooms to accommodate your family, a well-lit room for your remote home office or plenty of garage space for the classic car you restored. With a list of must-haves, you'll be able to sift through real estate listings more efficiently. Maybe you've found what looks like the perfect home in every way, but it doesn't have a backyard and is located miles away from the nearest school. If you have a large family with young children and a dog, then outdoor space and proximity to a school are going to be deal-breaking must-haves for you. On the other hand, if a home doesn't have one of your must-haves right now but has the space or potential for renovations to make it happen, you may want to keep the house on your list as a viable option. Verify your mortgage eligibility (Dec 5th, 2023) Nice-To-Haves Nice-to-haves are wishes, not essentials. They're features in your home that you'd like to have, but aren't necessarily at the top of your priority list. You might prefer that your new home has a pool in the backyard, updated appliances, a spiral staircase or a firepit, but in the grand scheme of things, these probably aren't deal-breaking requirements. The nice thing about having a list of nice-to-haves is that, when you've narrowed down your list of houses, they can be used to help you decide between your final candidates. Verify your mortgage eligibility (Dec 5th, 2023) Step 3: Check House Hunting Websites And Apps Browse houses for sale online or through a phone app to get a feel for your local housing market. House hunting websites can give you a close look at how much the average home sells for in your area and provide a more realistic idea of what type of home you can afford. Researching homes online also allows you to scope out potential neighborhoods for schools, shopping, crime rates and anything else you might want to consider. Apps can help streamline your process, providing organized access to listings. Compare the prices of what you see in the marketplace with your budget. Then, write down a few addresses and contact your real estate agent or the real estate companies that listed the homes you're interested in. Verify your mortgage eligibility (Dec 5th, 2023) Step 4: Connect With A Real Estate Agent Or REALTOR® A reliable real estate agent or REALTOR® is an expert in your local market who can make home shopping easier and less stressful. They can help narrow your search, give you a better idea of how to get the most out of your budget and show you more homes than you'll be able to view on your own. A good real estate agent or REALTOR® will also carefully consider your individual needs as they suggest homes to show you, rather than simply trying to push you toward the biggest sale and commission. So, what's the difference between a real estate agent and a REALTOR®? Verify your mortgage eligibility (Dec 5th, 2023) A real estate agent is a professional who has passed the necessary licensing examinations to do business in your state. REALTORS® are real estate agents who are members of the National Association of REALTORS®. They must hold a valid real estate license, be active in the market, adhere to a strict code of ethics and have a clean professional conduct record. Either can be a great help while house hunting. Work with a real estate professional who is certified as an Accredited Buyer Representative® (ABR®) or Certified Buyer Representative (CBR). You might also consider a professional who holds a real estate broker license, which means they've furthered their real estate education. Ask for references from previous home buyers and interview a few candidates before committing. Since you'll be spending a lot of time together, choose an agent whose personality meshes well with yours, and make your expectations and needs clear upfront. Step 5: See Houses In Person Many sellers have open houses for their properties where anyone can walk inside and take a tour of the home. You can also arrange personal viewings with your real estate professional of choice. Verify your mortgage eligibility (Dec 5th, 2023) When viewing a home, don't be afraid to be a little nosy. Test outlets, showers, toilets and kitchen appliances to make sure they work. Make a mental note of repairs or replacements you might want to ask the seller to complete if you decide to buy the home. Don't limit your hunt to just the house, either. Where you buy a home is just as important as which home you buy. Your real estate agent can help you explore neighborhoods as well as properties. Drive around areas you think you might like and compare local amenities and features to your budget. As you tour more homes and check out each neighborhood, you'll get a better idea of the right home and community for you. Whether you're looking for the perfect home online, with help from a real estate professional or through an open house, it's important to have initial mortgage approval before you jump in. That way, you know exactly how much house you can afford, and you can make a strong offer when you decide on a property. Show me today's rates (Dec 5th, 2023) GTG Financial, Inc Click to Call or Text: (707) 546-0440 This entry has 0 replies Comments are closed.