Welcome to the exciting world of real estate; get ready for the roller coaster ride that’s the path to homeownership. But before you leap, think of all the pitfalls. By being sure you have every bit of necessary information, you can approach this mile-stone with confidence.
Real estate is a big step for any buyer and if you’re not experienced, it can be daunting. Buying the right property is the goal. You say.” How can I test I’ve made the right decision?” The following steps are here to help:
- Have your financing in place
You won’t be wasting your time when you get pre-approved well in advance, and having your lender pull a credit report on you. This way you will know where you can improve and take steps to fix your rating, if required.
And while your about it, lenders know a lot you can profit from, so don’t be shy to ask them for their advice in your specific case. Check for guidance from your lender, like the price you can afford, measured against your income and thereby finding out what you can pay for. You also want to know the risks you face while waiting for closing.
You will need to keep a good work record and pay your bills on time or you will be penalized. It is also a fact that if you make large credit purchases or transfer big sums of money during this time before escrow, it will affect your credit adversely. Don’t suddenly go and max your credit card. Conversely, if you can pay your bills before their due date, you will improve your credit standing and that is what you’re looking for.
- Be well prepared
Once you’re in your new home, it’s no time to have regrets, because that will cost you dearly. Wise counsel tells you to research, research, research and do it well and thoroughly. Avoid making a mistake by keeping in mind the enormous cost and consequences if things go wrong. It stands to reason, this is possibly be the most expensive buy you have ever made, and it will be your first.
- 7 Years is your target
Seven years is the minimum length of time you should stay in your home. If you’re wondering why seven years, consider the costs involved in the transaction when acquiring your new property. Therefore, to save losing equity on each transaction, consider an even longer stay for your pocket’s sake.
Therefore, it stands to reason that if you are not staying any length of time, then put your purchase off and keep renting until you’re ready to take the plunge.
- Good agents are gold
Do whatever you need to find a full-time professional, real estate agent with at least five-year’s experience in the area you are targeting.
In addition, you need to verify that your chosen professional agent has a license to operate as a real estate, sales representative with the state. And while you’re at it, see how many deals the agency has closed in the past few years. A good rule of thumb is for them to have closed at least four to eight deals a year.
- It’s a steal
Let those words fade from your mind and remember it’s a home you’re looking for, not property speculation. There are stories throughout the real estate industry of people who burnt their fingers buying good deals.
However, it will do you no harm to study the real estate industry a little, for a more informed understanding of what you are getting into. After all, you will be spending a considerable amount of money, as well as locking yourself into a long-term investment.
Doing your homework can make your new home a highly profitable decision, assuring yourself of a much loved valuable asset for years to come.