So you’ve saved up some money and can’t wait to buy your new home. Before you line up your home visits though, it’s best to get prepared so you won’t run into trouble along the way.
Tip #1: Go have a talk with your banker
You will likely waste a lot of time if you start looking for a home, only to find out later that the homes you were looking at don’t fit in your budget. Yes, a banker will not get you a bank loan if you don’t have a purchase contract signed, but they can give you an idea of what budget you can expect.
There are even handy online calculators such as this one, which let you figure out how much house you can afford.
Knowing whether to sell your home first before looking for a new one, or buying the new one first before ditching the old one is always a popular topic of discussion. Your banker can help here as well.
Tip #2: Figure out what you want
There are many clients that start looking before they even know what they want. And granted, it’s not always easy to know exactly what you want. But you could start by making a list of things you absolutely have to have and things you can be flexible with. For example, instead of insisting on a garage, you might decide to be content with an outside parking.
Tip #3: Go see your real estate agent in person
There is nothing better than speaking with your real estate agent before you start your search. This will ultimately save you frustration and time. When your agent knows exactly what you’re looking for, and where you are willing to make sacrifices, she’ll be able to adjust the search criteria much better and will come up with results that fit.
An, by the way, when the agent asks you about your finances, be open and honest about it, it’s going to help in the end. Why you ask? Well…once you’ve made a purchase offer, the agent will have to go present it to the seller and argue on your behalf as to why you are a buyer that can be trusted; a buyer that has the necessary finances to buy the home. This is what the seller is interested in and without good arguments, you might well lose a purchase in favor of a buyer that provided all the necessary information.
