A Few Helpful Home Buying Tips
Buying a house can be a daunting task, even for someone who
has owned several homes. After helping hundreds of families purchase homes of
their own, the mortgage specialists at Homestead Funding have picked up some
helpful hints along the way that they would like to share.
Use Online Resources
Almost every state and local government has a website where
you can research real estate information. Data on home sales, taxes, and neighborhood
school district information is invaluable when you are shopping for a home. You
find the most recent sale prices in the neighborhood you are interested in.
This information can be extremely valuable, helping you narrow down your
neighborhood search. Doing the research will make you more knowledgeable about
the real estate market – which is key to making a good purchase.
Be Realistic About How Much You Can Spend
Getting pre-approved for a mortgage can be a tremendous time
saver in helping you understand what you can afford. If possible, try to buy a
home in a price range that allows you to put down 20%. If you put down less
than this, you will have to pay PMI (private mortgage insurance) to protect the
lender in case you default on the loan. 20% may be a lot, but it’s not
unrealistic. You may not be able to do it on your first home, but hopefully you
can on your second home. The profits from the sale of a first home can enable
you to have more than enough for the 20% down payment on your second home. You
don’t have to use all of your profits as a down payment. Many people save some for unexpected expenses
that tend to come up when buying a home.
Use A Local Mortgage Company
Local Mortgage Lenders can offer more personalized service.
People tend to go with large, well-known banks, since that’s all they are
familiar with. Local companies provide excellent customer service and offer
competitive home loan rates compared to larger banks. They are proven to be crucial time savers
because your file stays with your loan originator and processor throughout the
mortgage process, allowing you to have the ability to speak directly with them
at any time. Traditionally, local mortgage companies don’t spend a lot of money
on huge advertising campaigns – they often rely on word-of-mouth – so they
maintain a high level of customer service in order to preserve your business
and get referrals.
Always Have A Home Inspection
Most people know this fact already, but it is really
important to get a home inspection in areas with a hot real estate market. You
can easy get caught up in a bidding war and overlook shortfalls of the home
because you are so focused on winning the war. Many people want a house so
badly that not only do they overbid, but they also waive the home inspection.
They get the house only to find out later it had several thousand dollars worth
of damage that would have been found in an inspection.
As a final note, try to remember that buying a home doesn’t
have to be scary. It’s very exciting to own your own home; so think of all the
good things that to come once you have made it through the home-buying process.
If you follow the above advice, you should be well-equipped to make it through
unscathed.
