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Deciding to shop for a new home is a big decision. If you are like most, you’re ready to jump in and start looking at homes. However, there are four main shopping tips that you’ll want to keep in mind to ensure that you’re getting a great deal on your next home.
Know Your Budget
Before you even start looking at homes, you want to take a look at your budget. Just because you’re approved for $320,000, that doesn’t mean that you need to spend that amount of money on a home. Think about your budget and determine how much you’ll feel comfortable spending on your new mortgage. Utilize an online mortgage calculator to reverse engineer what the maximum purchase price of your new home must be to fit within your desired payment range. This will ensure that you only look at homes within your budget range. If you don’t create a budget ahead of time, you may end up getting excited to purchase a certain home only to realize that it isn’t within your price range.
Always Get Pre-Approved
Another step that you’ll want to take before actually looking at properties for sale is to get pre-approved for a mortgage. Most sellers will want proof that you’re pre-approved for a loan before they accept your offer. It’s best to contact a reputable lender such as a credit union to get your pre-approval before you get started. Different lenders will offer a variety of policies, so make sure to choose one that aligns with your budget. Once you have been approved for a loan, you will seem like a more credible buyer and will be able to make offers more reliably.
Have a List of Musts
When you start the property shopping process, it’s very easy to let emotions take over. You can easily end up making a bad financial decision when you let your emotions decide which property you buy. Instead, make a list of your musts. This will include things like four bedrooms, two baths, and a one-car garage. When you have this list in hand, you can make a decision if a property fits your needs or not without bringing emotions to the table. If you have loved ones that will be sharing a home with you, take the time to listen to their needs so that you can search for a property that meets everyone’s expectations.
Get an Inspection
When you finally find a property that you’re thinking of purchasing, it’s time to step back and get an inspection. You never want to skip over this step as you could miss something that could cost you thousands of dollars to fix after you own the property. While an inspection does cost money to have done, it can save you a lot of money. When your inspection shows problems with the home, you can make these problems known to the seller and negotiate a better purchase price to ensure you’re not stuck with the costs of fixing everything that is wrong. While taking a tour of a home is an important part of the process, you will want to rely on a professional that has the tools and skillset required to adequately inspect a property.
Property shopping should be entered into with a strategic mindset. When you implement the shopping tips above, you can help to ensure that you’re happy with your home purchase. Paying attention to small details will make for a more enjoyable experience. Never let your desire to buy a home outweigh the strategies listed above.
By Brooke Chaplan
who is a freelance writer and blogger. She lives and works out of her home and residing in Los Lunas, New Mexico. Her first passion is journalism, but she also loves hiking and gardening. Brooke recommends working with a reputable lender such as the Credit Union of Denver.
Member since October, 2019
View all the articles of Brooke Chaplan.