Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.
Why Do You Want To Buy? Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property.
Has Your Income Grown? Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.
Quick Tips For A Successful House Hunt. Carefully craft your wish list and try to stick to it. If you are shopping with your partner, discuss your must-haves and deal breakers together so you’ll be on the same page during your house hunt.
Remember you are not only buying a house, but the neighborhood too. Is it safe? Talk to neighbors and ask questions. Spend time in the area to determine if it offers the lifestyle conveniences you’ll need.
Don’t see too many houses in one day. You may begin to feel overwhelmed and confused after touring several homes. Too many homes in a short period of time will run together in your mind and you won’t recall which kitchen or which master bedroom belonged to which house.
Stay within your price range and consider added expenses such as taxes, home owner’s association fees, maintenance etc.
Is It Better Right Now To Rent Or To Buy? I’m sure by now you’ve heard that mortgage rates are at record lows and they have been for months. Housing prices are still relatively low. The key to seeing a return on your investment in ANYTHING is to buy low and ride the wave on up. The cost of borrowing money right now makes home ownership cheaper than renting in many cases. What do you think happens if everyone continues to rent because they are afraid to buy??? Rents continue to skyrocket. Investors know this, that’s why they are buying everything they can now, so they can rent it to you at an inflated rate later. BUY NOW! I don’t care if you walk, run, or take a hot air balloon to our office. Just do it now!
Steps To Take To Prepare To Buy A Home Within A Year. If you are planning to purchase within the year then your priority right now should be to clean up your credit. Pull those reports, see if there is anything that may make the process difficult. Any past dues? Any lates? Judgements? Call the creditors and work out a deal. The key to getting a good mortgage rate is credit worthiness.
Make sure you have filed your taxes. Mortgage companies will need your last 2 and sometimes 3 years of tax returns so pull that together.
SAVE SAVE SAVE! Also, it may be worthwhile to sit with a mortgage professional now and try to get preapproved. This way you’ll know in advance what your purchasing power is. And if you can’t get preapproved, at least you’ll know why and you can begin to start cleaning your profile up.